2. Ignore taxes, transaction costs, and other imperfections for the problem. a) You own a piece of land that is currently valued for $3 million. The price of land in the area has increased by 10 percent per year over the last five years, with an annual standard deviation of 20 percent. A potential buyer has recently approached you and wants an option to buy the land from you in the next 18 months for $3.3 million. The risk-free rate of interest is 5 percent per year, compounded continuously. How much should you charge for the option? b) Suppose instead that you wanted the option to sell the land to the potential buyer in 18 months for $3.3 million. What should be the price of the option today