Please do everything asap.

Part 1a

If one is long a European put option, when the spot price of the underlying asset is below than the strike price of the underlying asset the option is said to be:

At-the-money

In-the-money

Out-of-the-money

Below-the-money

Part 1b.

Investor A is currently in a short call position with a strike price of $36. The option premium for the option is $2.5. At expiration, the underlying asset price rises to $41. What is the investors net profit or loss?

$2.5

- $5

$0

- $2.5