…option or dealer securities futures contract. Each contract held by a taxpayer at the end of the tax year is treated as if it was sold for is fair market value, and gains or loSSeS are treated as either short-term or long-term capital gains. Correlation - Measure of the strength and direction of the linear relationship between two variables or data sets over a period of time. Correlation can vary between .1 to -1. Values close to •1indicate a…