Question: I chose answer 2 and it was marked wrong. Can you explain why? If the price of the underlying asset is equal to the strike

I chose answer 2 and it was marked wrong. Can you explain why? If the price of the underlying asset is equal to the strike price of an option, the option is said to be:
Question 27 options:
1)At-the-money option
2)In-the-money option
3)European option
4)American option

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