Wilson Corporation Granted an Incentive Stock Option to Reva on January

Wilson Corporation granted an incentive stock option to Reva on January 1, two years ago. The option price was $300, and the FMV of the Wilson stock was also $300 on the grant date. The option allowed Reva to purchase 150 shares of Wilson stock. Reva exercised the option on August 1, this year, when the stock's FMV was $400. Unless otherwise stated, assume Reva is a qualifying employee. The results of the above transactions to Reva will be

A) ordinary income to Reva on the exercise date of $15,000.
B) no income to Reva on the grant date or exercise date but there is an alternative minimum tax adjustment item to Reva of $15,000.
C) no income tax or alternative minimum tax effect for Reva.
D) capital gain to Reva on the exercise date of $15,000.