Canadian Employee receiving US Stock Option

I get employee stock options form the company I work for in Canada.
It is a multinational company publicly trading in the NY Stock Exchange.
This year I exercised the options. No US tax was withheld.
Do I report this in 2007 as capital gain ?
Thanks for the response
david ingram replies:

Your employer will report it on your T4 slip at the end of the year.

Check with your payroll department but that is what is supposed to happen.

Sounds like Electronic Arts (ERTS) to me and they always put the stock option on your T4 slip.

When you do get your T4 slip, look in the footnotes.   There should be a note stating a figure of one half of the amount of tjhe stock option.

This amount is a DEDUCTION which you put on line 249 on page 3 of your Canadian T1-return