An individual enters into an option to buy 1,000,000 Euro’s at $1.2 per Euro. The option will expire in February 2019. The taxpayer acquired the option from the taxpayer’s investment banker and the option was not traded on an exchange. At the end of 2018, there was $300,000 or unrealized gain in the options contract. How much gain did he taxpayer have to recognize in 2018 and what was the character of the gain? Why?