On February 18, 2022, Emma purchased a put option for $500. She did not exercise...
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Accounting
On February 18, 2022, Emma purchased a put option for $500. She did not exercise this option, and it expired on June 18, 2022. How should this transaction be reported on Emma's 2022 return?
$500 of investment expense.
$500 of long-term capital gain.
$500 of short-term capital loss.
It is not reportable, as there is no gain, loss, or expense related to this transaction.
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