# Options - Please explain them, thanks



## daaussie (22 November 2005)

HI I am investigating some companies that are offering options. I am trying to assess their worth. Can someone explain how they work?

Here is an example of the company information, their current share price is 8 cents:
(a) the Options are exercisable on or before 2 years from the Issue Date on the basis of one (1) Share for each Option;
(b) the Options may be exercised by notice in writing to the Company on or before 2 years from the Issue Date
by delivering a duly completed form of notice of exercise together with a cheque for the exercise price of 5
cents per Option to the Company at any time prior to the expiry date;
(c) the exercise price for each Option will be 5 cents;
(d) the Options may be transferred at any time;
(e) the options cost 1 cents each


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## karmatik (22 November 2005)

Hi

Dont know much about them but this active thread might help:

https://www.aussiestockforums.com/forums/showthread.php?t=1697

Also, maybe use the search function.

Good luck!


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## RichKid (5 December 2005)

daaussie said:
			
		

> HI I am investigating some companies that are offering options. I am trying to assess their worth. Can someone explain how they work?
> 
> Here is an example of the company information, their current share price is 8 cents:
> (a) the Options are exercisable on or before 2 years from the Issue Date on the basis of one.........




Hey daaussie,

Glad to see that you are interested in options but they are complex instruments, so be wary.

I agree with Karmatic, this has been covered before, browse or search the forum before posting a new thread please, see the posting guidelines thread and the ASF code of conduct asap- thanks.

Also, what's the co you mention (code) and the option code? It may not be an eto. See the other threads in this forum first, lots of reading but very good stuff imo.

RichKId
moderator


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