I think that is a fair price. Bring it to him with $3,800 and pick it up and drive it away with a new transmission. You might ask him if you need to provide a core for the 700 R4. Also ask him if you will get your old Slim Jim back. You could always take the insides out and use the case as a dog house or something. I am sure they must be good for something. 
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"Some men are Baptists, others Catholics. My father was an OLDSMOBILE man." Ralphie Billingsley A Christmas Story 1983
"We rei-eign, supreme, ooooh god! Burrito supreme, and a chicken supreme, and a CUTLASS SUPREME!" Tenacious D 2007
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