If I exercise underwater ISOs, can I claim a loss?
If you do this, you own a stock worth $1, with a basis of $2. The loss doesn't get realized until the shares are sold. Of course, we hope you see the stock increase above that price, else, why do this?
Below is an instruction that describes a task. Write a response that appropriately completes the request.

### Instruction:
If I exercise underwater ISOs, can I claim a loss?

### Response:
If you do this, you own a stock worth $1, with a basis of $2. The loss doesn't get realized until the shares are sold. Of course, we hope you see the stock increase above that price, else, why do this?