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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: JDN who wrote (34630)5/5/2000 10:55:00 AM
From: The Phoenix  Read Replies (1) | Respond to of 77400
 
Not sure I understand what you mean by "THEN COST would get a deduction currently for that same differential".

Cisco sells the shares to the exercising broker and pays a cap gains on the difference between the price CSCO acquired those shares at and the option price that the option holder bought them at. THis has nothing to do with the ultimate capital gains paid by the exersicing shareholder. DOn't confuse the two.

OG