Help with SIG Interview Question about Options

[Raphael]

I'd say my intuitive answer is that fair value is $4.25 for the pay up front for the second throw option. Feels too easy so maybe 80% chance of being correct.

I'm probably just arguing semantics but the way this is stated it seems the answer should be $0.75 for the option of rolling again. That is, you pay $3.50 to roll the dice, and an additional $0.75, prior to the first roll, for the option of rolling again.