Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he intends to exercise all of the options. Two years later Brad sells the stock for $27 per share. What is Brad's basis in his stock for purposes of calculating the gain or loss?

Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he intends to exercise all of the options. Two years later Brad sells the stock for $27 per share. What is Brad's basis in his stock for purposes of calculating the gain or loss?

Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he intends to exercise all of the options. Two years later Brad sells the stock for $27 per share. What is Brad's basis in his stock for purposes of calculating the gain or loss?


A. $6,000.

B. $9,000.

C. $15,000.

D. $16,200.


Answer: C


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