Sam Lawson is a vice president at a large communications firm. His compensation includes a salary of $410,000, a bonus of $205,000 and a stock option package that allows him to purchase 28,000 shares of the company's stock at $46 per share. He can exercise the option anytime within a three-year period that starts on the first of next month. The stock is now selling at $62.5 per share. If the current price holds until the first of the month, and Sam exercises his option, how much will he make this year?

$ fill in the blank 1