You own a lot in Key West, Florida, that is currently unused. Similar lots have

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You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1.4 million. Over the past five years, the price of land in the area has increased 16 percent per year, with an annual standard deviation of 16 percent. A buyer has recently approached you and wants an option to buy the land in the next 10 months for $1.48 million. The risk-free rate of interest is 4 percent per year, compounded continuously. You should charge $for the option.(Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars. Round your answer to 2 decimal places. (e.g., 32.16))

You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1.4 million. Over the past five years, the price of land in the area has increased 16 percent per year, with an annual standard deviation of 16 percent. A buyer has recently approached you and wants an option to buy the land in the next 10 months for $1.48 million. The risk-free rate of interest is 4 percent per year, compounded continuously. You should charge $for the option.(Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars. Round your answer to 2 decimal places. (e.g., 32.16))

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