5. On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale?

1. $300 long-term capital gain.

2. $300 long-term capital loss.

3. $300 short-term capital gain.

4. $300 short-term capital loss