options for newbies

Hi all,

I am new to share trading and options and I recently bought some VIL and now looking at buying some VILO as well.

I was wondering what happens when the share price does go above 10cents before the expiry date of the options and we choose to do the conversion, say if I bought 1mil options at 1cent and the share price is now 12cents.

So do I need to have 1mil * 10 cents in my Comsec acc for the conversion to be successful? Or is it possible for me to do a conversion and sell the share immediately at 12 cents hence making a profit of 1 cent per share? Hope I am not sounding stupid here.