Adam Dunn and the Cincinnati Reds were scheduled for an arbitration hearing but agreed at the last minute on a two$-$year deal that would pay Dunn $$7\mathrm{.}5$ million for $2006$ and $$11\mathrm{.}0$ million for $2007.$ The Club has an option for the $2008$ season at $$13$ million. If it does not exercise the option, it must pay Dunn $$500,000.$ If the probability that the option will be exercised is $\mathrm{.}75$ and the discount rate is $10$ percent, what is the value of the contract?