Imagine the following for stock X:
1) I buy a call contract for X with a strike price of $1 2) The market value of X rises to $5, so I exercise my calls to acquire 100 shares of X 3) After a year, I sell X for $10
When tax season rolls around, will my capital gains be $5 (i.e., based on the value of the stock when I exercised the option) or $9 (i.e., based on what I paid for the stock?
Thank you.
Submitted January 07, 2024 at 12:02AM by MaximumOverkeks https://ift.tt/915FE3m
