I agree. The main issue holding the SP back is the risk of...

I agree.
The main issue holding the SP back is the risk of dilution of any gains in NAV by 50% for any rise above 1.00 between now and may 2017 when the options expire. There is 1 option for every 1 share and i think <1% have been exercised to date given low NAV.
If the NAV rises to say 1.10 by may 2017, then probably 80-90% of options will be exercised (always some people who don't have the cash etc), thus dilution at that time from 1.10 to 1.05, i.e. a capital loss of 5% i.e. half of any gain above 1.00.

the good news is that if the nav is trading at around 1.05-1.10 but the share price is under 1,.00, most people would not exercise their options due to the immediate loss of capital (since they have to pay 1.00 per option but SP <1.00).

i am holding 5k in pai, that i bought at 92.5 when NAV was 94.0 the reason i bought shares instead of buying to the fund directly was the minimum 20k and the 1.5% management fee. i am confident that the SP discount to NAV will decline as the high recent returns continue and once the options expire.

so my prediction is that NAV will be well above 1.00, then NAV will be diluted by around 40% due to options, but the loss due to dilution will be offset by the gain by closing the discount between NAV and SP.

does that make sense? just my humble opinion