An investor purchases a call option on a fixed income security index for $30. Which of the following results is most likely to occur if the index at expiration is $700 given an exercise price of $600?
1) The investor will exercise the option and make a profit of $100
2) The investor will exercise the option and make a profit of $70
3) The investor will not exercise the option and make a loss of $30
4) The investor will not exercise the option and make a profit of $100