I presume you are referring to Company issued options rather than Exchange traded options.
Exchange traded options are a contract between counterparties and no money flows to the underlying company.
Company options are often issued free to existing shareholders at a fixed ratio (eg one option for 4 shares) and are priced below the existing share price for obvious reasons. If the option itself is transferable it generally will be listed and can be bought and sold on the ASX. Its value will be an approximation of the difference of the Option take up price and the share price.
As this is a traded instrument the conditions are determined by the company and are fixed. You would be mighty annoyed if the company could vary the conditions at its whim and thus no logical buy/sell decision could be made.
In your scenario the price of ABC has clearly fallen and the option would be unlikely to have any (certainly not 5c) value 10 days prior to expiry. Note these options usually cease trading 5 days prior to expiry date.
The company would probably reissue options with a 15c "strike price" after a suitable pause- so the punters don't feel it is desperate for cash!!
