jravantiI am not much more than a novice myselfMy understanding...

jravanti

I am not much more than a novice myself

My understanding is the options expire 31/01/2010 at which time if you have not paid 25c per option you hold, to convert them into ordinary shares, they expire, no longer exist.
The logic when buying options is you are betting they will be worth more than 25c plus the purchase price by 31/01/2010, i.e., if you buy options at .13c you are betting the price for VPE on 31/01/2010 will be more than .38c. If they are not at that price you can allow the options to lapse and only lose the 13c payment price, or if they are over that price you are required to pay the 25c per share to convert them to shares. Say if they are 50c a share at that time, you get 50c shares for 38c (as per above example .13 options purchase + 25c conversion)

Hope this clarifies