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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF
COMS 0.00130-18.8%Nov 7 11:47 AM EST
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To: Dwight E. Karlsen who wrote (10665)12/14/1997 4:20:00 PM
From: Wayne Lian  Read Replies (2) of 22053
 
Dwight, do you know the answer to the tax liability from the following option and stock trade:

On 100 shares XYZ purchased 3 years ago at $10, one call option has been written at a striking price of 50.

Now the call is being exercised. On the stock position it will trigger a capital gain of 50-10=40 per share.

Question is: Can you avoid realizing the capital gain by buying 100 XYZ shares(say at 55 per share) in the open market to be delivered in places of the shares purchased 3 years ago?
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