Question: Question 8 Consider an American call option with a strike price of $ 5 0 on a stock whose current price is $ 5 5

Question 8 Consider an American call option with a strike price of $50 on a stock whose current price is $55.
1. Is the option in-the-money, out-of-the-money, or at-the-money?
2. Will the option premium be higher if the stocks dividend yield is low or high?
3. Is the options premium worth more or less than $5?

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