On May 9, 2017, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2017, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during the following 12-month period. Glenna receives a call premium of $750 for writing the call. The call is exercised by the grantee on December 15, 2017.

a. What is the amount and character of Glenna’s gain or loss?

b. Assume that the original option expired unexercised. What is the amount and character of Glenna’s gain or loss?