When calculating the gain for RTSO for foreign shares options how should the FX rate be taken into account? Specifically I've an ESPP scheme where the amount saved in euros appears to be FX'd at salary time and saved in dollars until the options are exercised at the end of the ESPP scheme. The gain in the documentation supplied to me is provided in dollars.
Option one (as per documentation):
(dollar market price - dollar option price) * FX rate = euro gain
Option two (actual gain as far as I can tell):
(total market value in dollar * FX rate) - amount deducted from salary = euro gain
There can be significant enough variation in the euro gain amount due to FX rate movement over the duration of the ESPP scheme. Interestingly my partner seems to have their savings converted from euro to dollar at the time of share purchase rather than at time of salary payment.
Option one (as per documentation):
(dollar market price - dollar option price) * FX rate = euro gain
Option two (actual gain as far as I can tell):
(total market value in dollar * FX rate) - amount deducted from salary = euro gain
There can be significant enough variation in the euro gain amount due to FX rate movement over the duration of the ESPP scheme. Interestingly my partner seems to have their savings converted from euro to dollar at the time of share purchase rather than at time of salary payment.
