An option was granted by a public company in 2018 to purchase 1,000 shares for $10 per share. At the time that the option was granted, the fmv of the shares was $10. The individual exercised the option during 2020. The shares were trading at $15 per share when the option was exercised. What is the amount that can be deducted as a stock option deduction in 2020?

1) $0

2) $5000

3) $1000

4) $2500