The Final Charge , Phase I/II MND Results & FDA ODD Approval Catalyst, page-688

There are several ways that options can be considered in the context of a T/O and ASX/ASIC have regulations governing such.

Firstly, the rights that attach to an option cannot simply be nullified by the target company nor the acquiring company without due consideration (ie. Money) unless there was some bizarre clause in the option terms that was somehow legally sound.
The most common method is for the options to be cancelled, yet paid out based on the intrinsic price (ie. T/O price of heads less exercise price) This is because the market for those options ceases to exist, so the opinion of the market cannot be called apon to establish risk/value over time. There is also the presumption that any T/O offer accepted by shareholders would be at the maximum attainable value of the company (and options) anyway. So whether an option has 1 year or 2 years to run is moot.

In the case of ResApp there was a premium paid above the intrinsic value- most likely done at the discretion of the buyer. Why? Well all options accounted for only 1% of the T/O price, so it was probably a good tactic to spend a fraction of a % on paying premium above intrinsic. Even the 43c opptions which never had a hope in hell of converting and had zero intrinsic value still got some value attributed to them- just a way to grease the wheels? (some of those options may also have been held by directors??)

In most cases a company goes into and out of TH throughout a takeover period, so there is also the old fashioned way of converting or selling that holders can use.

There are other ways the options can be realised, a Google search will reveal all.

I haven't read the letter re. Bpay yet from what posters say, it just looks like a window of convenience to induce holders to convert within a time that suits the company.

I doubt it has anything to do with any T/O talks. Remember we only got topline results. So any suitor would still be sifting through the fine print before jumping into a transaction.
If anything, the company is looking at suring up funds so that it can do the trials without a full T/O.
It would be completely insane to accept a ph1 value T/O now when all we need to do is raise 30 or 40m to get to ph3 value.