Preferred Accounting Specialists, a publicly traded company (ticker PAS), issues you 100 Incentive Stock Options with a grant price of $47.00 a share. PAS is currently trading at $47.50 a share with a target price of $49.00 a share by the end of this taxable year. You are unsure if you have a taxable gain. Upon research you determine that if the stock hits the target price by year end, your taxable gain will be...

A. $0

B. $4,700

C. $4,750

D. $4,900