CXZ 0.00% 2.8¢ connexion mobility ltd

piggy back options

  1. 1,204 Posts.
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    I just re-read the options prospectus and remembered the piggy back options.

    If I understand it correctly, if you exercise your 20c strike option before Jan 1 2016 you then received an additional 1 for 1 piggy back option struck at 25c.

    So if the shares go say to a dollar, the intrinsic value of one of today's options would be

    $1 minus the 20c strike price = 80c

    Plus

    $ minus the 25c piggy back option strike price = 75c

    In this case the oppies should then be worth $1.55 each, much more than the share!

    Please correct me if I've missed something here but the oppies look like they have some amazing value
 
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