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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 $2.03 million, and the current,

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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 $2.03 million, and the current, appraised market value of the land is $1.73 million. The land is currently used as a parking lot, generating just enough money to cover real estate taxes. The annual standard deviation is 18% and the interest rate is 11%. 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.) Call value

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