options ctpoa, page-15

Grangeh
ctpoa are not options like eto's, they are really partly paid shares with the balance to be payed as described ie 25c 2010. They trade on the same exchange as the fpo's. It's a method of leverage, you can buy more shares with the cash available. But, they are more volatile and the market has currently put a big premium on them (market is bullish the stock) Typically these type of options trade at the head price minus the exercise price + or - market sentiment. In a neutral the stock market ctpoa should trade close to zero now 22c - 25), but more likely in the low single digits. If ctp does move up big time ctpoa holders will make massive gains. Negative outcomes could result in 80-100% loss.
All part of the game.
cheers
Rod