An investor purchases a one-year call option on a thoroughbred race horse with an exercise price of $1 million. The price of the option is $50,000. The investor is most likely to exercise his option in one year if the value of the horse at that time

Exceeds $1,050,000.

Exceeds $1,000,000.

Is less than $1,000,000.

Is less than $950,000.