Call option with the strike of $35 is selling for $2.50 . The stock price is $42.50. Assume the option expires today, choose the correct statement:

If instead of a call, this were a put option it would not be exercised , since the put would be $ 5,00 out-of- themoney .

The call option won't be exercised since the is $ 7.50 out-of -the- money.

The call option will be exercised since the call is $ 7.50 the money .

if instead of a call , this were a put option , it would be exercised , since the be $ 5.00 in- the- money