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You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise price is $2.01 million. Suppose the land

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You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise price is $2.01 million. Suppose the land is occupied by a warehouse generating rents of $155,000 after real estate taxes and all other out-of-pocket costs. The present value of the land plus the warehouse is $171 million. The annual standard deviation is 16% and the interest rate is 13% How much is your call worth? (Enter your answer in dollars not in millons. Do not round intermediate calculations.) Call valon

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