Pharoah Pharmaceuticals entered into a licensing agreement with Zenith Lab for a new drug under development. Pharoah will receive $$7700000$ if the new drug receives FDA approval. Based on prior approval, Pharoah determines that it is $90\%$ likely that the drug will gain approval. The transaction price of this arrangement is

$$0$ until approval is received.

$$6545000.$

$$1155000.$

$$7700000.$