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You have received a grant of 2,000 NQSO shares. They vest on a graduated basis over a five-year period. The strike price was $10 per
You have received a grant of 2,000 NQSO shares. They vest on a graduated basis over a five-year period. The strike price was $10 per share. It is now three years since the grant and the current price is $20 per share. You decide to exercise on a cashless basis.
(a)How many shares can you exercise?
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(b)What will be your "pretax" gain on the exercise?
Answer:
(c)How will the options be taxed?
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