Just wondering if anyone can add to my limited knowledge of how the stock options work? Is the option grant money yours to keep or do you only get to keep the net increase in the value of the stock?
How much do the stock options contribute to your T4 on a typical year?
WestJet Stock options?
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A stock option is an option to buy a certain amount of shares at a previously set price. The shares are vested for two years, at which time there is a two year window to exercise those options. When exercising the options you can either take the gain in price (assuming there is a gain) or buy the options outright. For instance lets say you get a set of options today with a price set at $15. Two years from now the options come do and the price of the stock is $17, you can then take the $2 dollar gain you have made, or buy your options at $15 dollars (buying them outright gives you more control over stock as you would place them in your own brokerage account). On the other side of the coin if the stock two years later was selling for $13 then your options are worth nothing. However you would have two years to exercise your options, so if the price of the shares where to increase past the strike price they then become viable again.
Clear as mud,
Clear as mud,
The force will be with you, always
Okay thanks, I understand everything except for this part:
".... and for every dollar increase or decrease, subtract $6900."
In your example, the options increased by $7.21.
$7.21 X $6900 = $49,749. So, if for every dollar increase, subtract $6900 this would mean $49,749 - $49,749 = $0. Am I missing something?
".... and for every dollar increase or decrease, subtract $6900."
In your example, the options increased by $7.21.
$7.21 X $6900 = $49,749. So, if for every dollar increase, subtract $6900 this would mean $49,749 - $49,749 = $0. Am I missing something?
