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The difference between the strike price and market price is the value of the option--its the money you otherwise would have had to pay to buy the stock if you d
by morpheuskafka 5y ago
The difference between the strike price and market price is the value of the option--its the money you otherwise would have had to pay to buy the stock if you didn't have the option. That's why it is so.
- fossuser 5y agoSo tax the gain on sale of the stock - there's no good reason to tax it on exercise (especially when the stock is illiquid and the price can still go down). The current law is bad imo.