Question: On May 1 2 , 2 0 2 4 , Tom purchased an option to buy 2 , 0 0 0 shares of Major, inc.

On May 12,2024, Tom purchased an option to buy 2,000 shares of Major, inc. at $80 per share. He purchased the option for $2,000. It was to remain in effect for six months. The market experienced a decline during the latter part of the year, so Tom decided to let the option lapse as of November 12,2024. On his 2024 tax return, what should Tom report?
Question 11 options:
A $2,000 short-term capital loss.
A $2,000 Sec. 1231 loss.
A $2,000 Sec. 1250 recapture loss.
A $2,000 ordinary loss.
A $2,000 long-term capital loss.

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