day ("Please rate thumbs-up. If any doubt please let me know in the comments) Q: Suppose that Mr. A writes a July option on February 13, 2010 to BUY 100 stocks of ABC company from Mr. B in December 2010 at price $50. Mr. B paid $0.7 as option price per share to Mr. A. The option is exercisable any time until maturity. The prices of the underlying stock are $45 and $48 in September 2010 and at maturity respectively. Using the above information fill in the following blanks. What kind of option is it? In September, the option is in-the-money, at-the-money or out-the-money? What will be the spot price of the option if it is out-of-the-money in November 2010? The long position holder in the option is Mr. What will be total pay off from the option in September 2010