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You own a one - year call option to buy one acre of Los Angeles real estate. The exercise price is $ 2 . 1

You own a one-year call option to buy one acre of Los Angeles real estate. The exercise price is $2.11 million, and the current, appraised market value of the land is $1.81 million. The land is currently used as a parking lot, generating just enough money to cover real estate taxes. The annual standard deviation is 13%, and the interest rate is 13%.
How much is your call worth? Use the BlackScholes formula.
Note: Enter your answer in dollars not in millions. Round you final answer to nearest whole number.
THE ANSWER IS NOT .0750!!

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