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Blown head gasket.

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If its a bare head (no cams, valves, springs, etc), its much cheaper. Last one I had done was only $8 per cylinder, so $32. If its a complete head and they have to do a bunch of labor count on it being a bit more one the pricey side. You may also need a valve job and new seals while its out as well.
 
I would say $50 is fair. I have paid 40 at a local place, and $50 at another. I walked out of one place who told me $90. Call around, its normally a set price for dohc I-4 heads.
 
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