Options are perceived as a new financial product by many, but like forward, they were used several hundred years ago in trading during ancient civilisation. Now, with their usage in the over-the counter (OTC) and derivatives market in Europe, the United Kingdom, the United States and later in Asian market, options cannot be considered new financial instrument but have a long played a big role in the economy. a) Why do you consider that an option is more flexible instrument in your strategic financial planning? b) Differentiate between 'at-the-money' compared to 'in-the-money' and 'out-of-money' in an options trade.