Roger10 - I think that it is a travesty for Pete to get options...

Roger10 - I think that it is a travesty for Pete to get options with a 33 cent strike price - but your logic is wrong in concluding that the options represent an additional $132,000 in salary.

$132k is the cash that Pete would have to get out of his wallet if he ever wanted to exercise the options. He would then enjoy the benefit of the difference between the share price at the time of exercise of the options and the exercise price of 33 cents. This might be substantial, or very little at all.

The company has had a go at valuing the options on page 8 of the NOM - and come up with a current valuation of around $32k.

Options valuation is a specialised field of endeavour - but a bit of google research will teach you the basics.