Please explain how you find whether they are in, out, or at the money.

You currently have a position on an insurance put. An insurance put is a combination of a long stock and a long put on the same stock. You purchased the stock at the price of $30 and the put at the premium of $2. The put option has an exercise price of $30. 1) If the stock price increases to $40, what is your net income? NI for the stock position: 4030=10 NI for the put position: -2 (out-of-the-money) Total: 8 2) If the stock price drops to $29, what is your net income? NI for the stock position: 2930=1 NI for the put position: 30292=1 (in-the-money) Total: -2 3) If the stock price drops to $25, what is your net income? NI for the stock position: 2530=5 NI for the put position: 30252=3 (in-the-money) Total: -2