The Devil Rays exercised options Monday on contracts worth a total of $8.95 million for 2006 on closer Danys Baez and shortstop Julio Lugo. Baez, 28, was 5-4 with a 2.86 ERA and finished fifth in the American League with a career-high 41 saves this past season. In exercising his $4 million option, the Rays chose not to buy him out for $1 million. Lugo, 29, batted .295 with a .362 on-base average and a .403 slugging average. He led the Rays in walks (61) and was second in runs scored (89) and hits (182). His 2006 salary will be $4.95 million after the Rays chose not to exercise a $100,000 buyout. The Rays also spoke Monday with the agent for left-handed pitcher Casey Fossum, who has a mutual option for 2006 worth $1.4 million. The team and player have until today to mutually decide whether the option will be exercised. Fossum, who turns 28 on Jan. 9, is arbitration eligible, so the Rays wouldn't lose him even if he decided not to accept the $1.4 million deal.