Hall, Inc, Enters into a Call Option Contract with Bennett Investment

Multiple Choice

Hall, Inc., enters into a call option contract with Bennett Investment Co. on January 2, 2011. This contract gives Hall the option to purchase 1,000 shares of WSM stock at $100 per share. The option expires on April 30, 2011. WSM shares are trading at $100 per share on January 2, 2011, at which time Hall pays $100 for the call option.
Using the information above, the 1,000 shares of WSM stock in this contract is referred to as the

A) collateral.
B) notional amount.
C) option premium.
D) derivative.