You own a lot in key west, florida, that is currently unused. similar lots have recently sold for $1,320,000. over the past five years, the price of land in the area has increased 6 percent per year, with an annual standard deviation of 32 percent. a buyer has recently approached you and wants an option to buy the land in the next 12 months for $1,470,000. the risk-free rate of interest is 4 percent per year, compounded continuously. how much should you charge for the option?