Chrissie Owns a Vintage Guitar That She Values at $300

Chrissie owns a vintage guitar that she values at $300.Mark would like to buy the guitar and values it at $1000.The negotiations are as follows.Chrissie suggests a price to Mark.If Mark agrees trade takes place at the agreed price.If Mark rejects the offer, negotiations end and each party receives a payoff of $0.What are the potential gains from trade?

A) $300
B) $400
C) $700
D) $1000
E) None of the above.