Maren Received 10 NQOs (Each Option Gives Her the Right

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. How much gain will Maren recognize on the sale and how much tax will she pay assuming her marginal tax rate is 35 percent?

A) $0 gain and $0 tax.
B) $500 gain and $75 tax.
C) $500 gain and $175 tax.
D) $1,200 gain and $180 tax.