Click the start button below to start your 4 question quiz below. Good luck!
Click the button below to start.
Question 1 of 4
Simple Homework: Imagine you exercise 1,000 NSOs with a $1 strike and $10 FMV. How much ordinary income would you recognize?
$1000 ($1 x 1,000 NSOs = $1000)
$10,000 ($10 x 1,000 NSOs = $10,000)
$9000 ( ($10 - $1 = $9) x 1,000 NSOs = $9,000)
None of the Above
Question 2 of 4
For Non-Qualified Stock Options (NSOs), when is the 'spread' typically taxed as ordinary income?
When the options are exercised.
When the options vest.
When the company has an IPO.
When the options are granted.
Question 3 of 4
After exercising your NSOs, what becomes your new 'cost basis' for the shares?
The FMV at the time of the grant.
The total value of the options in the grant.
The original strike price.
The Fair Market Value (FMV) at the time of exercise.
Question 4 of 4
If you hold your NSO shares for more than one year after exercising them, the profit from a future sale will be taxed as...
short-term capital gains.
not taxable.
long-term capital gains.
ordinary income.