In: Finance
Classify the following options as in-the-money (ITM), at-the-money (ATM) or out-the-money (OTM): a) Call option, strike price $50, current price of the underlying asset $55. b) Put option, strike price $55, current price of the underlying asset $50. c) Call option, strike price $70, intrinsic value $5 d) Put option, strike price $40, premium $3, time value $3.