Question: On June 1 , 2 0 2 3 , Brady purchased an option to buy 1 , 0 0 0 shares of General, Inc. at

On June 1,2023, Brady purchased an option to buy 1,000 shares of General, Inc. at $40 per share. He purchased the option for $3,000. It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Brady decided to let the option lapse as of December 1,2023. On his 2023 tax return, what should Brady report?
a. A $3,000 long-term capital loss.
b. A $3,000 short-term capital loss.
c. A $3,0001231 loss.
d. A $3,000 ordinary loss.

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