E Corparation learns that F Corporation (a large public company) will pay a large dividend so that before the record date E buys 1 share of F for $500, receives a $250 dividend 30 days later, and sells the stock for $250 on the next day.

a E Corporation has a 70% DRD equal to $175

b E has no DRD because of Section 246 requiring a 45 day holding period.

c E has a $250 capital loss

d (b. and c.)

e (a. and c.)

Which is the right answer?