ssno cheap deals, page-26

Maybe an explanation of the name "options" may help dbl21 as the terminology is probably not obvious. Options provide the holder the right (but not the obligation) to purchase shares in the future at a fixed price, ie in this case 1.5c per share. So in effect the holder has the "option" as to whether they want to buy shares @ 1.5 or not and the "option" to buy those shares at that price remains open until the option(s) expire in Dec 2012.

In the case of SSN we can reasonable assume that every single option will be exercised. Mad not too really. All holders of SSN options holders currently have the right to buy shares in SSN for 1.5c. With SSN shares currently trading @ 11c the options have a value in their own right even though they aren't actually shares as such.

If an options holder wishes to take up their right to purchase SSN shares for 1.5c this is called "exercising you option(s)". Some people call this converting your shares so it can get a bit confusing. As options really aren't shares you can't convert them as such but in practical terms both terms infer the same outcome.

I hope the terminology makes more sense.