Question: On July 1 , 2 0 2 4 , Yates purchased an option to buy 1 , 0 0 0 shares of General, Inc., at
On July Yates purchased an option to buy shares of General, Inc., at $ per share. Yates purchased the option for $ It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Yates decided to let the option lapse as of December On the tax return, Yates should report:
a A $ loss.
b A $ ordinary loss.
c A $ shortterm capital loss.
d A $ longterm capital loss.
e No gain or loss.
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