Clarification needed with Loyalty Options

[someone]

Hi.
Need a better understanding of Loyalty Options. Using the following example:
Basis of issue: One (1) option for each (2) shares owned
Exercise Price: $0.30 per option
Current Stock Price: $0.19
Option Life: 2 years

- So after 3 months, the holder of the options could sell them for $0.30 each (locked in price -irrespective of what the regular stock price is at the time of selling options) ?
- Will the options held be shown (in one's stock trading account holdings list) with the regular stocks held by holder ?
- What is 'Option Life' ? I assume it's the valid period of the option price ($0.30 as per above example) and then after 2 years, the price of options will automatically reflect the price of the regular stock price ?

 

[qldfrog]

Hum, i understand it the other way,
You have the option(right but not obligation) to purchase half of your current share number (1 for 2) at the price of 30c in 2y time..
So if the shares go up and reach $1. You get a 70c profit per option.
Obviously, if in 2y, SP is 25c..you do nothing, they expire but you have lost nothing

 

[Belli]

I view it differently as well in that the exercise price of the options isn't necessarily the market price of the options (assuming the options are listed or renouncible.)

Are they attatched to the share or listed separately on the market and able to be sold?

 

[someone]

I view it differently as well in that the exercise price of the options isn't necessarily the market price of the options (assuming the options are listed or renouncible.)

Are they attatched to the share or listed separately on the market and able to be sold?

When you state 'listed separately on the market' .... in what manner ? The options seem to be attached to the share.

 

[Dona Ferentes]

what is the share name?