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The executive exercises the options, paying $10 a share plus taxes on $40 a share, including federal, state and local income taxes and payroll taxes like Medicare and Social Security.
If the deal goes ahead as described, and Qatar exercises the options, the sovereign wealth fund will end up with a stake of around 20% in Volkswagen as well as its new stake in Porsche.
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This is so because the producer exercises the option if in the first hour the price is equal to 23 €/MWh and the unit is unavailable.
He added: "I exercised the options.
The practice allows the option recipients to reap greater gains upon exercising the options.
But Mr. Bush left the company at the end of 1993 and never exercised the options.
He also had an incentive not to exercise the options until the children reached 18.
Profits from the exercise of nonqualified options are taxed at ordinary income tax rates, and most executives who exercise such options sell the shares when they exercise the options.
Premier allowed him in 2001 to exercise the options and sell the shares at a gain of more than $4 million.
Exercising the options gives you the right to buy or sell the shares at a certain "strike price".
All this could be avoided if Halliburton would let Mr. Cheney exercise the options before he took office.
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