Mpjo, page-101

Not having dealt with options before, would someone like to comment on my queries. I have researched, but it is still not as clear as I'd like:

Regarding the conversion to shares calculation, is it just a matter of adding the option buy price, say .0o2, to the strike price, .01 = .012

1) This will be the total buy price of the options, which can be compared to the share price, for example .015, resulting in a profit of .003 for each option?

2) Do I get one for one on conversion, or does each option convert to 100 shares, for example 100k ops to 10 million shares? (have read this, but there seems to be different types of options).

3) Is there any 'time decay' and if so, what is its formula?

Any advice appreciated