What are the tax consequences to marisol from exercising

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Reference no: EM131523418

Marisol was granted 100 NQSOs five years ago. At the time of the option grant, the value of the underlying stock was $100 and the exercise price was equal to $100. If Marisol exercises the options on August 22 of this year when the stock is valued at $145, what are the tax consequences (per share) to Marisol from exercising the options?

a. $45 of W-2 income, $100 of short -term capital gain.

b. $100 of W-2 income, $45 of short-term capital gain.

c. $145 of W-2 income.

d. $45 of W-2 income.

Reference no: EM131523418

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