Jean, it is my understanding that option holders are not normally entitled to benefits that will accrue to the holders of the common stock, in buyout situations.
I believe that you are a Canadian resident, and I am not familiar with their tax laws. If there is no benefit to be gained by having a capital gain be long term as opposed to short term, then you would have no benefit to exercising early so that your holding period of the stock would reach 12 months sooner. However, if you want to share in the McData spinoff, then you first would need to determine whether, as an option holder, you would be eligible. If not, then you probably need to exercise your leaps, in spite of interest costs, in as timely a manner as possible so as to be eligible to participate.
BP |
