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I must have misunderstood. I thought that the strike price always reflected the current price of the shares at the time the option was issued, but it seems that
by gabemart 13y ago
I must have misunderstood. I thought that the strike price always reflected the current price of the shares at the time the option was issued, but it seems that this is not the case. Thanks for clarifying.
- loumf 13y agoI'm pretty sure the strike has to be greater than or equal (out-of-the-money) or there are tax implications. So, they would need to tell you (I AM NOT AN ACCOUNTANT) Not that an at-the-money option has no value -- but I think for tax purposes, it's not treated as such.