Sammy Shark runs a local gas station chain which has assets with a fair market value of $4 million. Sammy's local gas station chain also has $1.5 million in debt. In addition, the volatility of Sammy's business tends to move with gas prices, which currently are around 50% annualized. All of Sammy's debt matures in 2.5 years. Finally, the risk-free rate is 4%. What is the fair value of Sammy's gas station chain, using Black-Scholes options pricing to value the business as a "real option"?

Zero dollars, Sammy's gas station chain is worthless

Around $900,000

Around $1,500,000

Around $1,900,000

Around $2,700,000

Around $4,200,000

Sammy's gas station chain is a priceless National Treasure; which cannot have a price put on it.