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?

Draw a flowchart for a process of interest to you, such as a quick oil-change service, a factory process you might have worked in, ordering a pizza, renting a car or truck, buying products on the internet, or applying for an automobile loan. identify the points where something (people, information) waits for service or is held in work-in-process inventory, the estimated time to accomplish each activity in the process, and the total flow time. evaluate how well the process worked and what might be done to improve it.