On January 31 of This Year,Mallory Pays $800 for an Option

Multiple Choice

On January 31 of this year,Mallory pays $800 for an option to acquire 100 shares of Mesa Corporation common stock for $85 per share.As a result of an increase in the market value of the Mesa stock,the market price of the option increases and Mallory sells the option for $1,000 on August 4.As a result of the sale,Mallory must recognize

A) $200 STCG.
B) $800 STCG.
C) $200 ordinary income.
D) $800 ordinary income.