Can someone explain how options work. this is my first time...

  1. 110 Posts.
    lightbulb Created with Sketch. 4
    Can someone explain how options work. this is my first time receving them so not too sure. I have 15k shares exactly so 5k x0.005 =$25. does that mean if i exercise my options at 0.50 (exercise price) does that mean i get $25 worth of shares? not 100% sure how this works.


    https://hotcopper.com.au/data/attachments/5337/5337044-00ee257358a3d4473289b4b404e377f0.jpg
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.