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 1,2024, Yates purchased an option to buy 1,000 shares of General, Inc., at $30 per share. Yates purchased the option for $2,000. 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 1,2024. On the 2024 tax return, Yates should report:
a. A $2,0001231 loss.
b. A $2,000 ordinary loss.
c. A $2,000 short-term capital loss.
d. A $2,000 long-term capital loss.
e. No gain or loss.

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