Hope, Inc., enters into a call option contract with Baker Investment Co. on January 2, 2012. This contract gives Hope the option to purchase 1,000 shares of XYZ stock at $100 per share. The option expires on April 30, 2012. XYZ shares are trading at $100 per share on January 2, 2012, at which time Hope pays $400 for the call option. The $400 paid by Hope, Inc., to Baker Investment is referred to as the----.