Which of the following pairs of items is not needed to calculate the after-tax proceeds for a same-day sale?
A)Strike price and market price on exercise date
B)Strike price and market price on grant date
C)Market price on sale date and market price on exercise date
D)Market price on sale date and marginal tax rate

Question

Quizplus · Accepted Answer

To calculate the after-tax proceeds for a same-day sale, we need to know the market price on the sale date and the market price on the exercise date, as well as the marginal tax rate. The strike price is irrelevant to this calculation, but it may be needed to calculate the gain or loss on the option. The market price on the grant date is also irrelevant to the calculation of after-tax proceeds for a same-day sale.

Which of the Following Pairs of Items Is Not Needed