On May 25, 2018 you purchased an option which will allow you to sell a commercial building on August 14, 2022 for $42 million. Your current estimate of the value of the commercial building is $38...

On May 25, 2018 you purchased an option which will allow you to sell a commercial building on August 14, 2022 for $42 million. Your current estimate of the value of the commercial building is $38 million.  The annual volatility for the change in the commercial building’s value is 57% and the risk-free rate is 6%.

1. 
   
   
   
   1. What type of option is this?
   
   
   2. Calculate the value of the option to sell the commercial building.
   
   
   
   

Please show work in excel and equations/questions used.