Nick Owns a Dog Whose Barking Annoys His Neighbor Jane

Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth $700 to Nick, and that Jane bears a cost of $500 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for:

A) ​There is no private solution that would improve this situation for both parties.
B) ​Jane to pay Nick $650 to get rid of the dog.
C) ​Jane to pay Nick $800 to get rid of the dog.
D) ​Nick to pay Jane $600 for her inconvenience.