On July 1,2010,Brandon Purchased an Option to Buy 1,000 Shares

Multiple Choice

On July 1,2010,Brandon purchased an option to buy 1,000 shares of General,Inc.at $30 per share.He purchased the option for $2,000.It was to remain in effect for five months.The market experienced a decline during the latter part of the year,so Brandon decided to let the option lapse as of December 1,2010.On his 2010 tax return,what should Brandon report?

A) A $2,000 long-term capital loss.
B) A $2,000 short-term capital loss.
C) A $2,000 § 1231 loss.
D) A $2,000 ordinary loss.
E) None of the above.