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

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.


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