P25-9 Black-Scholes and Asset Value [LO4] You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1.6 million. Over the past five years, the price of land in the area has increased 11 percent per year, with an annual standard deviation of 25 percent. A buyer has recently approached you and wants an option to buy the land in the next 8 months for $1,710,000. The risk-free rate of interest is 7 percent per year, compounded continuously. How much should you charge for the option