Here are my calculations i did last week when trying to justify taking up the option conversion offer:
At the time the sp was 4.4 cents and the oppies were at 2.9 cents.
1 . To convert Pay 3 cents and receice a fully paid share and a new option
2. On market purchases/sales Sell old option for 2.9 cents and buy share at 4.4 cents and buy new option (at my estimated value) at 1.5 cents. I am out of pocket 3 cents and have 1 share and 1 new option.
As such there is no benefit/loss from the new option deal, other than you increase your holding but save on brokerage.
But it all depends om what value you give the new options, the 1.5 cents is just my best guesstimate. If you think there is more value in the new option you are better off converting.
DSE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
