Please read my post - which should give you a better understanding on how TMZOA are priced by the market between now & Oct24 when they expire. i.e. you do not have to pay out the 11.5c Exercise price before then.
https://hotcopper.com.au/posts/58537824/singleYour comment : "So TMZOA real value should remain at 2.5c even when the heads are at 14c" is not effectively correct
until within a month or so before the Expiry Date deadline for exercising. i.e. when only a month or so is left - before you have to decide whether to exercise your TMZOA or not, is to look at the SP
then -
say Sep24 - for both TMZ and TMZOA.
If TMZ are still then priced at 14.0, then TMZOA will then only be worth 2.5, so you would not benefit in any way financially by outlaying another 11.5 simply to get the shares. You'd simply sell your TMZOA for 2.5, unless you wished to take up the shares for whatever reason.
There will either be 1 of 2 other scenarios that will be in place then :
If TMZ are priced at say 10.0 then, your TMZOA's will be worthless - i.e. there'll be no buyers but perhaps 100's of sellers wanting to sell millions at 0.001.
But If TMZ are priced at say 15.0 then, your TMZOA's will be worth 3.5 - i.e. 15.0 less the 11.5 soon payable to exercise them.
But in the meantime - given the market's "market-appraisal" of what the Company might achieve in the Short Term, that appraisal will be reflected in a steadily increasing SP in that Short Term :
e..g. if TMZ's SP rises to say 15.0 in the next 3 to 6 months (say by Jun22)
then TMZOA might rise IMO in that same 3 to 6 months to even 5.0 cents
i.e. the 15.0 for the shares less the 11.5 payable to Exercise the Oppies
no later than Oct24
= 3.5 ,
but plus a 1.5c "market premium" for the time or intrinsic value built in,
because of there being neither
need nor reason to exercise these Oppies, any time before the then 3+years they still have to run until Exp. Date.
That is why I made mention in my earlier post that this "premium' will eventually abate over time, probably down to around 0.3
by say Jul24 when there is only 3 months left for the Oppies to run.
I trust this "maths" lesson clears up this matter for you, as well as any other readers curious to know how L/Term Oppies are valued by the market
in the months to years they still have to run till Exp. date.
As for my comment in my prev. post - that I considered that 2.5 was a high price to pay for the Oppies at the moment - I appraised as such on the basis that some newbies might feel they could expect to pay more than 2.5 in the S/Term - for whatever reason - so are buying them at 2.5 now, for FOMO. (Fear of missing out - a very easy trap to fall into). And note that there is very little trade volume at the moment, in both TMZ & TMZOA which can play havoc with the SP's for both, whilst the market is not taking much interest in stocks, currently doing SFA.
(20min delay)