You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise price is $2.05 million, and the current, appraised market value of the land is $1.75 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 12%.

How much is your call worth? Use the BlackScholes formula. (Enter your answer in dollars not in millions, rounded to the nearest dollar. Do not round intermediate calculations.)

You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise price is $2.05 million, and the current, appraised market value of the land is $1.75 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 12%. How much is your call worth? Use the Black-Scholes formula. (Enter your answer in dollars not in millions, rounded to the nearest dollar. Do not round intermediate calculations.) Answer is complete but not entirely correct. Call value $ 0 X