... 23PRICING OPTIONSA call option confers on its owner the right to buy; the seller (writer) of the call has the obligation to sell, if asked(exercised). In theory, there is no limit to the profit poten-tial ... premium of 7.50,whereas the underlying stock is trading at 66.25.1. Is the option in the money, out of the money, or at the money?2. What is the option’s intrinsic value, if any?3. What is the ... Ingeneral, options are in the money when it is profitable toexercise them, and out of the money when it is not prof-itable to exercise them. For this purpose, you do not con-sider the option’s premium,...