CG12313 - Options: exercise of an option: grantor of the option
TCGA92/S144 (2)
If an option is exercised
- the granting of the option and
- the transaction entered into by the grantor in fulfilment of his obligations under the option
are treated as a single transaction.
If the single transaction is a sale by the grantor, the consideration for the disposal is the sum of
- the consideration received for the grant of the call option (see CG12301), plus
- the consideration received for the transfer of the asset which was subject to the option.
If the single transaction is a sale to the grantor the acquisition cost of the grantor is
- the consideration given for the transfer of the asset which was subject to the option, less
- the consideration received for the grant of the put option (see CG12301).