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- 1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by ____ 3, Determine the Intrinsic Value1. The option is currentlyA. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by _____3, Determine the Intrinsic Valuei) Differentiate between “in the money”, “out the money” and “at the money” positions in a put option. Provide the example with the illustration.
- Question 3: What are the pros and cons of using options traded in the over-the-counter market and in an exchange for hedging? Plz explain itWhat’s the difference between a financial optionand a real option? What are some specific typesof real options? Do real options just occur, or canthey be “created”?D3) Please describe the Compound Option, the advantages and disadvantages of investing in this option versus a Vanilla Option.