On September 15, 2014, Spiral Corporation Grants Jay an Option

On September 15, 2014, Spiral Corporation grants Jay an option to acquire 250 shares of the company's stock for $10 per share. The fair market price of the stock on the date of grant is $14. The option does not have a readily ascertainable fair market value. How much must Jay report as income at the date of grant?

A) $-0-
B) $1,000
C) $2,500
D) $3,500