Adding Option cost to stock basis

Feb 10, 2008 2 Replies

Hello



In the early 90's I purchased a stock option for $0.50 with a strike price of 5.



Near expiration I exercised the option and brought the stock at 5.



Is my basis for that stock 5 or is it 5.5 (including the cost of the option)



Thanks very much.


$5.5 plus commissions (on the option purchase, and the exercise fee).

Seth

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