A worthless security had a holding period of 6 months when it became worthless on December 10, 2014. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?

a. the investor has a long-term capital loss of $20,000.

b. the investor has a short-term capital loss of $20,000.

c. the investor has a nondeductible loss of $20,000.

d. the investor has a short-term capital gain of $20,000.

e. none of these.