"An investor purchased 100 shares of RAVAD common stock at $40 per share on June 17, 2019. On May 11, 2020, with the RAVAD selling at $60, the investor hedges by purchasing one RAVAD Oct 55 put at 2. The put expires with the RAVAD selling at $65 and the investor liquidates the long stock position at that price. This would result in
A)a long-term capital gain of $2,500 and a short-term capital loss of $200.
B)a short-term capital gain of $2,700.
C)a short-term capital gain of $2,500 and a short-term capital loss of $200.
D)a long-term capital gain of $2,300."