You need to stump up the funds to convert them to ordinary...

You need to stump up the funds to convert them to ordinary shares.

Say you've got 100,000 BITO options with an exercise price of 12c per option. You need to pay the company by bank deposit, bpay etc 100,000 x 0.12 = $12,000 to convert all 100,000 options. There is a form that goes with it which needs to be submitted to the company with the funds. All options have an expiry date, after which they are worthless.

Listed options are often used to hedge risk. So rather than buy the underlying share which will cost you more upfront, you can buy the options for less while still being exposed to the upside.