Consider an investor who chooses to purchase a call option at time t for Po=10 with a strike price equal to 120. Furthermore, assume that the option can exercised on date T. The option itself is based of an underlying asset that trades at 130 on date T. Such an investor would not exercise her option on date T is indifferent between exercising the option and not exercising would end up with a return of O would end up with a return of -10