1. Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $34,300 to obtain an option to buy the land for $686,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $42,875. What is the amount and character of Olivia's gain or loss?
2. She has a long-term capital gain______________ of $.