director selling the reason cause market panic, page-9

does anyone know the tax implications of exercising options at 20 cents for a share now worth 1.70?

Do you have to pay any capital gains upon exercising of the options (with another capital gains upon the eventual sale of the shares) or upon the final sale of the shares.

For example.

On the day of exercising the options the share is worth 1.70 the option is 20 cents - the capital gain is 1.50. Then in 1 year the shares are sold for 2.70 and another gain is calculated for 1.00.

Or does the shareholder have to pay the gain of 2.50 at the final sale of the share?