Question $10$

$On$ June $1,2018,$ 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 $asof$ December $1,2018.On$ his $2018$

tax return, what should Brady report?

$A$ $$3,000$ long$-$term capital loss.

$A$ $$3,000$ short$-$term capital loss.

$A$ $$3,0001231$ loss.

$A$ $$3,000$ ordinary loss.

None $of$ the above.