On June 1 of the current year, Short borrowed 100 shares of B stock and sold it short for $9,000. Owning no B shares, Short purchased 100 shares of identical B stock on June 15 for $10,000 and "closed" the sale. On July 5 of the same year, Short again purchased 100 shares of identical B stock at a price of $9500.

(a)Does § 1091 apply to disallow Short's loss? See Reg. § 1.1091-1.

(b)What result if Short closed the sale on June 15 with identical B stock which Short had purchased on March 1 of the current year?