Costs 20c per option to convert to shares... The price you are paying today (around 3c) is the rights to be able to convert to shares if you choose to at a later date but no later than 30th Nov when they expire... POK needs to be over 20c for the options to be 'in the money', meaning that there is no incentive to convert options if POK is below 20c since you can just buy cheaper on the market...
Options is a leverage play, where you can make a lot of money or you can lose the lot if the shares don't go over the exercise price (in this case 20c)...
eg You buy 100,000 options at 3c costing you $3000
You buy 100,000 shares at 16c costing you $16,000
Shares go up to 50c, your shares are worth $50,000
at 50c, the options will be worth around 30c (50c-exercise price), your options will then be worth $30,000...
With options you would have 10 bagged whereas only tripled your money with normal shares...
To convert your options to shares, you have to pay 20c per option... So 100,000 x 20c, you have to pay $20,000 just to convert to shares, but then you will have 100,000 shares...
If POK isn't over 20c by end of November, you lose your initial $3000... You can convert any time between now and end of November...
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