I sincerely hope that you are right! However, I don't think he would exercise the options unless there was at least a .30 differential between exercise price and market price.

The typical way to exercise options, ( I know this from experience), is to immediately sell enough of the exercised options to cover the purchase price of the remaining shares. You do it this way so you have no out of pocket expence.

For Fred to do this profitably, I believe the share price would have to be at least .60 to cover expenses including taxes.

Jay