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Alicia purchased a put option for $500. The option expired on August 19, 2016. What should Alicia report on her 2016 return? $500 of investment

Alicia purchased a put option for $500. The option expired on August 19, 2016. What should Alicia report on her 2016 return?

$500 of investment expense.
$500 of capital gain.
$500 of capital loss.
No gain, loss, or expense related to this transaction.

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