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Cally75

8 Posts.

10/01/16

16:57

Post #: 16765972
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Originally posted by ammie ↑

I'll answer those is you want.

1. Your options only cost the price of the option. IF you buy with the intention to exercise them, then yes, the SRT share will be 0.027 in your example. Don't forget that many option buyers will sell those options on market so all they care about is their buy price (0.019) and their sell price (hopefully higher).

2. Strike price is generally found on an Appendix 3B in number 8 (all securities listed on the asx). There are many other sources (websites, broker data etc) but the 3B is the most reliable imo.

3. You can convert at any time before the options expire. They convert to shares when the registry gets your money. (Side note - I'm a bit surprised that we don't have more 3Bs now with SRTO conversions. Seems most O holders are either leaving it until the end or intend to sell prior to expiry).

4. The leverage is more for traders imo. If you intend to sell your oppies rather than exercise them, the leverage can be significant. The price difference between heads and oppies should theoretically be the exercise price and some time premium but sometimes the difference is more and sometimes less.

5. Yes. 1 option gives the 1 share when you exercise them.

6. The registry sends out the forms so yes, you will get one. If you don't or if you can't find it, you can always ring/email the registry or the company and they will send you one. Also for the SRTO's which expire soon, there will be a reminder notice sent out around March 1 with a form for anyone still holding at that stage (standard procedure for last month).

Also, as mentioned above, the company issues Appendix 3B announcements when options are exercised because they are issuing shares and cancelling options. I'm expecting these to be very regular over the next few months as SRTO holders start exercising their options.

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Just brilliant @ammie that answers everything for me. Thank you very much to everyone who provided their experience and knowledge I feel more confident about them now.

SRT Price at posting: 2.5¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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