The option that the OP is looking for is not on mine as well. Do the following:
Click on the "Manage Web Settingss" button and then you can select the Java in the left panel and select exactly how it reacts for different web sites, such as block, allow, ask, run in unsafe mode, and always allow. Makes it nice as you can block for everything except certain sits that you may need it for, such as with me certain work sites that require it for down/ up load of files.