On July 1, 2021, Brandon purchased an option to buy 1,000 shares of General, Inc. at $30 per share. He purchased the option for $1,000. It was to remain in effect for six months. What would be the tax effects of the following:

a. On September 15, 2021, Brandon sells the option to his neighbor for $2,000. What is the amount and character (long-term/short-term) of his gain.

b. On December 31, 2021, he lets the option lapse because the price of the stock had declined. What is the amount and character of his loss? c. What is the amount and character of the income to the option grantor upon the lapse of the option?