You own a lot in Key West, Florida, that is currently unused. The going price for similar lots is currently $1.2 million. Over the past five years, the price of land in the area has increased 10 percent per year, with an annual standard deviation of 19 percent. A buyer has recently approached you and wants an option to buy the land in the next 9 months for $1,310,000. The risk-free rate of interest is 7 percent per year, compounded continuously. How much should you charge for the option? Round off your answer to the nearest 000 dollars and show detailed calculations for each computational step.