Hornet Corporation made loans to a customer, Scarlet Corporation. In the current year, these loans become worthless. Which of the following statements is true?

a. Hornet Corporation may claim a long-term capital loss as to these loans.

b. Hornet Corporation may claim a short-term capital loss as to these loans.

c. The loans provide Hornet Corporation with a business bad debt deduction.

d. The loans provide a nonbusiness bad debt deduction to Hornet Corporation.

e. Hornet Corporation cannot claim a deduction for the worthless loans.