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Here is the scenario....Let's say I have 4800 shares of stock options of a company. The grant price is $2 and the current stock price is $100. I am thinking of outright buying the shares, instead of excercising them before they expire...because I do believe the stock will go much higher. Basically, I want to buy the options (since they are vested) and hold them. I understand if I i holf them for a minimum of 1 year after I buy them, I will only have to pay a capital gain tax of 20%.

My question is:

a) Do I pay tax when I buy the options...which according to the numbers above should cost me $ 9600 to buy.

b) If so, how much tax do I pay and what am I taxed on?

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