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I spent $1000 for options on CPQ in tax year 1998, and when the option came due, it was "in the money", so I purchased the underlying stock (again in 1998). I still hold the stock now. Is there any way I can take credit for the $1000 spent to purchase the option in 1998? I am assuming that the answer is no, and that when I eventually sell the underlying stock, that the my initial purchase price of the stock can reflect the $1000 spent for the purchase of the option for capital gains determination. Is that the case, or can I somehow count the option as a short-term capital loss (after all I did not sell the option back at a profit). Wishful thinking, I presume....
Any help would be appreciated.
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