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Sived Help Save & EAR 54 Check my w You own a one-year European call option to buy one acre of Los Angeles real estate.

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Sived Help Save & EAR 54 Check my w You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise price is $2.06 million, and the current, appraised market value of the land is $176 million. The land is currently used as a parking lot, generating just enough money a to cover real estate taxes. The annual standard deviation is 15% and the interest rate is 13% How much is your coll worth? Use the Black-Scholes formula (Enter your answer in dollars not in millions, rounded to the nearest dollar. Do not round intermediate calculations.) Call value 10.0840 ces

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