Suppose a European call option has an exercise price of $100 and the underlying stock has a price of $100. The stock will pay no dividends over the next year. The option expires in 1 year and the continuously compounded interest rate is 6%.

1. Is the call option in-the-money, at-the-money or out-of-money?
2. What will the option be worth on expiration if the stock price in 1 year is $110? What if the stock price is $90?