director selling the reason cause market panic, page-7

can anyone clarify what sort of tax implications there are once exercising options at 20 cents for a share now worth 1.70?

Do you have to pay capital gains upon the final sale of the shares or do you have to bay the capital gains up front for the difference between the exercise price and the current price of the share?

For instance - does the director have to claim a capital gains for $1.50 gain (1.70-.20) on 1 million shares this financial year?