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How Is the Gain/loss Calculated upon the Sale of Stock Acquired via a Call Option Exercise?

The gain or loss is calculated as the difference between the sale proceeds of the stock and the adjusted cost basis. The adjusted cost basis is the strike price paid for the stock plus the premium originally paid for the call option.

The holding period for the stock begins the day after the exercise date.

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What Is a ‘Cliff’ in the Context of a Vesting Schedule?
What Is the Difference between a “Day Order” and a “Good-Til-Date” (GTD) Order?
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