1. If you buy a call option for $5 and the strike price is $100 and the stock price is $101, then the option is _____ and has an intrinsic value of ______.
a. Out of the money, $1
b. In the money, $1
c. At the money, $1
2. If you buy a put option for $5 and the strike price is $101 and the stock price is $100, then the option is _____ and has an intrinsic value of _____.
a. Out of the money, $1
b. In the money, $1
c. At the money, $1