The Chicago Board Options Exchange (CBOE) is one of the worlds largest options exchanges. CBOE and other options exchanges trade contracts that give buyers and sellers the right to trade investment assets at a specific price within a specific time period.

A _________(call or put) option gives the option holder the right to buy an asset at a fixed price during a particular period. The fixed price, or the price at which the asset is bought, is called the exercise price.

The following table shows the options quotation in U.S. dollars for Parrot Transport Corp. for June 30 of this year.

Option	Closing Price	Strike Price	CallsLast Quote September	PutsLast Quote September
1	$45.00	$49.00	$3.00	$3.30
2	$45.00	$42.00	$4.50	$1.80
3	$45.00	$51.00	$2.40	$3.90

If you could exercise the options listed anytime on or before the expiration date (the third Friday of September), then these options would be _________(American, or European) options.

Assuming that the options listed are American options, on June 30, which of the call options for Parrot Transport Corp. listed in the table is in-the-money?

___Option 2

___Option 1

___Option 3