You are long a put option with a strike price of $50. If the current price of the stock is $40, which of the following statements is true?

1. The option is in-the-money and your gross profit per share is $10
2. The option is out-of-the-money and your gross loss per share is -$10
3. The option is out-of-the-money and your gross profit per share is $10
4. The option is in-the-money and your gross loss per share is -$10