On February 18, 2022, Emma purchased a put option for $500. She did not exercise this option, and it expired on June 18, 2022. How should this transaction be reported on Emma's 2022 return?

$500 of investment expense.

$500 of long-term capital gain.

$500 of short-term capital loss.

It is not reportable, as there is no gain, loss, or expense related to this transaction.