Question: What does it mean for an option to be in the money? 1. It means that the option has a premium that is less than

What does it mean for an option to be in the money?

1.

It means that the option has a premium that is less than the strike price
2.

It means that the option has a premium that is more than the strike price
3.

For a call it means that the strike price is more than the stock price and for a put it means that the strike price is less than the stock price
4.

For a call it means that the strike price is less than the stock price and for a put it means that the strike price is more than the stock price

Suppose I have an option that has the following Contract Name: PEP191011P00127000

Which of the following is true?

A.

This is a call option on Pepsico
B.

This is a put option on PepsiCo
C.

This is an option on Pepsico but we do not know if it is a call or a put
D.

None of the above are true

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