MacK v. Commissioner of Internal Revenue

McAllister, circuit judge.

By virtue of provisions in the will of his father, petitioner acquired an option to purchase a limited number of shares of stock from the testamentary trustees at a price equal to one half of the average market value of the shares at the time of exercise of the option. The average market price of the shares was defined to be “the mean between the high and the low of the market price of said stock during the six (6) calendar months immediately preceding the date of the particular purchase * *

Petitioner exercised the option, purchasing the stock at $34.06 per share.…