You own a lot in Mexico that is currently unused. Similar lots have recently sold for $0.45 million. Over the past five years, the price of land in the area has increased 7 percent per year, with an annual standard deviation of 13 percent. A buyer has recently approached you and wants an option to buy the land in the next 12 months for $0.48 million. The risk-free rate of interest is 3 percent per year, compounded continuously. How much should you charge for the option?

		$16,655.95
		$15,847.18
		$14,797.23
		$13,350.66
		$12,508.92