Instructions: complete this assignment and submit via blackboard. _refers to whether an option is in-the-money or out- of-the-money. _is the amount an option is in-the-money by. It is the amount that would be received by the option holder if he were to exercise the option immediately. _gives the holder/buyer the right to sell the underlying asset, for the given exercise price, at the option's expiration date. option can be exercised at any point in time up to and including the option's expiration date. __facilitates the creation of a more liquid market for derivatives. 6. Derivatives are created and traded in two different types of markets: (1) exchanges and financial contract or instrument that derives its value from the value of something else (known as the underlying). _these are standardized derivative contracts where one party, the buyer, will purchase an underlying asset from the other party, the seller, at a later date at a price agreed upon contract initiation. __are contingent claims because their payoffs depend on the underlying's value in the future. 10. List two features of arbitrage: (1) and (2) _