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In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a $35 strike price and a July expiration for a premium of $600. If Bubba sells the stock at $45 in July, what is his resulting tax liability for that transaction?
Correct Answer: C
Explanation/Reference: Explanation: a $1,000 gain. There is a $1,000 gain on the stock. The option is a separate capital asset.