Given how the question was framed re: options (100,000 new...

Given how the question was framed re: options (100,000 new shares hit his account with a pps of $2, then those same shares are either sold a day later or in 12 months time for $2). The question might have been whether a capital gain has been realised, if the shares are sold for the same value they were created at.

In my mind the answer is yes, because the options were exercised for $14,000 @ 0.14. You’ve therefore made a capital gain of $186,000. You would then pay tax at your marginal rate on the full amount or half depending on the length of the hold.

If this wasn’t the point of the question then I’m lost, it all seems fairly straight forward to me.