FAFSA and Private Company Stock Options

If these are Incentive Stock Options (ISOs) that are vested, but have yet to be exercised into shares, then they have no value. All you have is the option to buy the shares. I know the handbook lists them, but imagine a scenario where they are underwater. They have no real value until they are exercised.

If you have exercised the option to buy, and now own shares, saleable or not, I believe they would be categorized at FMV.

Options are weird. I have another thread on the exact topic. You might post the same question on that thread.

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