Please explain how you find whether they are in, out, or at the money.

You currently have a position on a call spread, which is a combination of a long call and a short call on the same stock. The excise price is $38 for the long call and $42 for the short call. You paid a premium of $3 for the long call and received a premium of $1 for the short call. Both options have the same expiration date. 1) If the stock price is $44, what is your net income? NI for the long call position: 44383=3 (in-the-money) NI for the short call position: (4244+1)=1 (in-the-money) Total: 2 2) If the stock price is $35, what is your net income? NI for the long call position: -3 (out-of-the-money) NI for the short call position: 1 (out-of-the-money) Total: -2