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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Michael Olds who wrote (9910)	7/9/1999 4:42:00 PM
From: Brian D. Potts	Read Replies (1) \| Respond to of 17679

Michael, This is true. The way I understand it is that when you exercise the option you are immediately responsible for the capitol gain between the exercise price and the current market value. This brings your basis cost to the current market value. Then when you sell the stock you owe tax on the remaining capitol gains. Exercising at the lower price would postpone capitol gains taxes. I wish I could say I've tested this, but alas I have never been granted any stock options.... bdpotts