In February, a customer sells 1 GHI Oct 60 put for 3 and buys 1 GHI Oct 70 put for 11. If the customer closes the Oct 70 put before expiration, which of the following statements regarding the resulting profit or loss is TRUE?
A) It depends on the disposition of the short Oct 60 put.
B) It is treated as ordinary income or loss.
C) It cannot be determined from the information given.
D) It is treated as a capital gain or loss.
Answer: D)