Imagine that a rancher would have an income of $80,000 if his county remains free from a cattle parasite but only $50,000 if the county is exposed to the parasite. Imagine that a county program to limit the impact of exposure to the parasite would reduce his income to $76,000 if the county remains free of the parasite but increase it to $70,000 if the county is exposed to the parasite. Assume that there is a 60 percent chance of exposure to the parasite and that the rancher’s utility is the natural logarithm of his income. What is the rancher’s option price for the county program?