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To: Gersh Avery who wrote (5203)	1/24/1999 2:51:00 PM
From: Berney	Read Replies (1) \| Respond to of 11051

Gersh, It's on the other side of the ledger. Worse than French, it's accounting lingo. If a call is exercised, its cost is added to the seller's amount realized and to the buyer's basis of the purchased stock. If a put is exercised, its cost reduces the amount realized upon the sale of the underlying stock. From CCH U.S. Master Tax Guide. The only advantage I see is that when an investor has a big gain in a call option, the investor (assuming still bullish on the underlying) can exercise the option, and, thus, defer the gain to possibly realize the lower capital gain rates. However, while a viable strategy, I've never seen it implemented. Berney