Well according to the OP the options have an intrinsic value of 10.8c due to time premium stemming from the 2020 expiry so they should be trading at the share price minus strike value (cost of conversion into FPO shares) of 40c plus the intrinsic value.
For example if they heads are trading at 70c then the options should be valued at 70c - 40c + 11c = 41c.
In this example, if you bought TMTO at 41c while the heads are trading at 70c then you would be in front by the time the heads reached 97c. Currently, the options are trading at heads minus 40c strike price so you're in front immediately with the benefit of leverage.
That's how I think of it anyway. Happy to be corrected.
TMT Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
