You are given an option to purchase 100 shares of stock at $20 a share as...
You are given an option to purchase 100 shares of stock at $20 a share as part of your benefit package at a new job. If you decide to use your option and purchase all 100 shares, then sell them 5 years later at the market price of $50 a share, what is your capital gain at the time of sale?
Homework Answers
Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.
At the time of sale, Capital gain earned would be $50-$20 per share i.e. $30 per share and $3000 in total.
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