QUESTION $5$

$S=48,x=50,C=$$$4,P=$$$3$

At expiration the call option

a$.$ Is in the money and should be exercised

b$.$ Is out of the money and should be left to expire

c$.$ Is at the money and should be exercised

d$.$ Has a payoff of negative $$4$

e$.$ Both $b$ and $d$ are correct