Multiple Choice
On January 31 of the current year,Sophia pays $1,000 for an option to acquire 100 shares of Texas Corporation common stock for $105 per share at any time prior to December 31.As of December 31,Sophia had not exercised the option or sold it.Which of the following statements is correct?
A) Sophia may recognize a $1,000 STCL.
B) Sophia may recognize a $1,000 LTCL.
C) Sophia may recognize a $1,000 ordinary income.
D) Sophia may not recognize a loss.
Correct Answer:
Verified
Correct Answer:
Verified
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