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stock options are another form of executive compensation you can be granted the right to buy stock in your company at a certain price and that right lasts for a certain period of time stock options come in different formats so the first thing or first action item you want to do if youre awarded a stock option is to understand what type of option youve been granted theres a couple that we see consistently which would be a non qualified stock option a stock appreciation right or an incentive stock option for purposes of our discussion today were going to focus on a non qualified stock option and stock appreciation right because those are for the most part what we see most frequently and those have the same tax consequences thats not to say an incentive stock option is any less valuable its just different and we dont see it quite as frequently in our practice and in companies at large today so at the time theyre granted theyre typically arent yet vested they typically a stock op