Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $55,200 to obtain an option to buy the land for $1,104,000 anytime in the next four years.

At the time the option is purchased, the option (is/ is not)considered a capital asset for Olivia.

Fourteen months after purchasing the option, Olivia sells the option for $69,000. She has (ordinary income/ a short term capital gain/ a long term capital gain)of $ ?????.