Australia's largest stock trading and investment forum Australia's #1 stock forum

MPJ

Click for more information

0.00%

0.0¢ mining projects group limited

Hi PHS, What happens should June 2016 and the share price not...

First 106 Last

Share
Profile

Follow
MFK

61 Posts.

3

19/11/15

14:22

Post #: 16433330
Share

Originally posted by poorhatsoap ↑

Hi Ekult,

First thing is don't confuse these types of options for options contracts, which is what your second point seems to indicate. MPJO are traded on the regular market just like the head shares, and convert on a 1-to-1 basis.

Options have an initial purchase price, currently 0.2c (or $0.002) each. They have an expiry date, in the case of MPJO - June 2016. They have an "exercise" or "strike" price of 1c (or $0.01) each. That means that when you purchase your parcel of options, say, 100000 @ 0.2c, you only pay $200.00. But those options are only "in the money" if the head share price is 1.2c (or $0.012) each, as converting each option to a full share will cost you an additional 1c. If the head share price never reaches 1.2c then the options are considered "not in the money". But you have until June 2016 for the heads to reach that price.

At any time that the options are in the money, you can either pay to convert them, or as most traders do, sell them for whatever the options are trading at at that time.

Hope that isn't too confusing.

GL

Expand

Hi PHS,

What happens should June 2016 and the share price not reach the target?

Matt

MPJ Price at posting: 0.6¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

HotCopper Highlights: Your most watched stocks for Week 46, 2024

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

There are more pages in this discussion • 12 more messages in this thread...

First 106 Last

Add MPJ (ASX) to my watchlist