hi towie - the cost of your options forms part of the cost base of your shares so you do get to use it eg - buy options today for 2.0 and then convert @ 1.5 = total cost base forbuuur shares is 3.5 (so if you then sell the shares in plus 12 months time for 9.5c then your gain is 6.0c less 50% or 1/3 discount depending on where you hold them
Remember this topic is assuming you convert
Cheers
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