Yes, you are right. In NOK case, I would only buy call options if I were you. If price is 0.23, for strike price $4.5 for April 2013, then you will pay $230 for 10 contracts. Or just $23 for 1 contract. 1 contract is a 100 shares. 10 contracts is 1000 shares. You have the right but not the obligation to buy the shares. You do not have to exercise if you do not want the shares. You can just sell the call options again in the open market when the price is higher than $0.23 and make a profit on the premium.
A Yahoo! User - Thanks so much for explaining this. I am just learning about options and did not understand how the pricing worked. In your examples above, the cost would then be $230 plus whatever commission your brokerage charges for each contract, correct?