At $0.079 for PGM (which it is at today) the options are theoretically worth $0.036 via the black scholes options calculator (using volatility of 75% and risk free rate of 3%).
It cannot stay at $0.016 for long. Considering it is fairly illiquid i think a fair price is somewhere in the mid .02's.
Boz
Black Scholes Calculator
http://www.mystockoptions.com/bs2.cfm?ticker=&s=7.9&x=6.0&t=1.5&r=3.5%25&v=75%25&calculate=Calculate
