Wording on options

[DTS]

I am having a bit of trouble with some wording on a document a company supplied my client for his option sales.

The document shows:
"Purchase price". I would call this the "option price or exercise price".
"Value price". I would call this "FMV".

I know this sounds pretty dumb, but I am having a little trouble and wanted some confirmation.

Thank you,
Dennis

[Gretel]

Hi, Dennis, sorry, nobody replied yet. I, with my foreign language problems, am not a good person to do so. I also find it difficult to come up with an right answer just having these words presented out of context.

I know, if you write down everything your post will be too long to even bother to read probably.

Good luck.

Gabriele

[DTS]

Wording

Gabriele,

Thank you for the post. The terms in the document are worded different than what I call them. I have done the option correctly, but just wanted to make sure because of this.

Dennis

[OldJack]

The document shows:
"Purchase price". I would call this the "option price or exercise price".
"Value price". I would call this "FMV".

Without knowing all the details I would expect that the terms used on the company document is correct. Remember... someone has to "purchase" (usually on the open market) the shares of stock that your taxpayer sells (or otherwise receives the stock certificates).

[DTS]

Options

OldJack,

Thank you. I calculated the amounts for the basis, according to what I was looking at and though the wording was different, all came out just fine.

Again, thank you for your input. Greatly appreciated!

Dennis