A worthless security (not § 1244 stock) became worthless on April 6, 2014. The investor who had owned the security had purchased it on November 6, 2013 and had a basis of $20,000 for it. Which of the following statements is correct?
The investor has a long-term capital loss of $20,000.
The investor has a short-term capital loss of $20,000.
The investor has a nondeductible loss of $20,000.
The investor has a short-term capital gain of $20,000.