why are mmnob 2c with mmn at 4c

Can someone please explain to me how this is supposed to work?

If MMNOB are in the money at exercise time (between now and 2011), the underlying MMN share price must be in excess of 10c.

Say the option was purchased today for 2c, and was exercised @ 11c MMN price, you have to pay a further 8c per share, to make a profit of 1c per share, ex holding and sale costs.

If, on the other hand, you simply bought MMN @ 4c, then at the same hypothetical exercise point (MMN @ 11c) you would gain a 7c profit per share, ex holding and sale costs.

This 7c (that's 700%) difference would contine at any time that MMNOB was in the money.

Why on Earth are MMNOB trading at anywhere near 2c? Their fundamental value must be close to zero....

Enlightenment would be appreciated.