A worthless security had a holding period of six months when it became worthless on December 10, 2020. 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 short-term capital gain of $20,000.

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

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

d.The investor has a nondeductible loss of $20,000.