Emilio Owns Vacant Land He Is Holding for Investment

Emilio owns vacant land he is holding for investment. Two years ago he granted an option to purchase the land. The option grantee paid $25,000 for the option. This year the option expired unexercised. As a result, Emilio has:

A) $25,000 long-term capital gain.
B) $25,000 short-term capital gain.
C) $25,000 ordinary gain.
D) No recognized gain or loss.
E) None of the above.