Hi Repo . An option is the right (but not the obligation )to buy...

Hi Repo .
An option is the right (but not the obligation )to buy a share for 35c in the case of NKP .You can do this at any time within the next 2 years ( 31 August 2011 )(the exercise date
If the share price is $2 for example, some time before this date ,you can pay 35c and convert it to a share .
If the share price is below the 35c strike price at 31 Aug 2011 then you will forfeit your option .
The rewards can be many times the fully paids in many instances ,but you must make sure you exercise or you will forfeit your initial investment.
Fortunately the companies usually send out plenty of reminders before that date .