An investor purchases an asset on May 9, 2007 for $32,500, and sells it today for $40,000. The asset generated cash flows of $6,500 over this period. The investor (best answer please)
a. experiences a realized gain of $7,500
b. experiences an unrealized gain of $7,500 and earned income of $6,500
c. experiences a realized gain of $7,500 and unrealized income of $6,500
d. experiences of realized gain of $7,500 and earned income of $6,500