Shares & Funds Securities Sale - Capital Gain calculation

Hi All,

My accountant has gone MIA and presume this may be an easy one for someone to answer...

In short, I'm trying to work out the capital gain calculation on a cashless securities sale (options).

The illustration is below, and I presume it’s either:

1. Capital Gain = Cash Consideration ($13,000) less Exercise Price ($2,000) = $11,000
2. Capital Gain = Purchase Price ($15,000) less Exercise Price ($2,000) = $13,000

Sale Securities – units : 10
Acquisition Price (per unit) : $1,500.00
Purchase Price : $15,000 (10 x $1,500)
Exercise Price : $2,000 ($200 x 10)
Cashless Transaction : $13,000 ($15,000 - $2,000)

Thanks in advance guys!
Harry

 

Sale price or market value less cost base

 

Thank you Terry, incredibly helpful response...

 

Options are very simple. Costbase less cost. Exercise of options creates a new asset and the 12mths starts again