Final answer:
The student is asked to analyze options based on information provided and determine whether they are in the money, out of the money, or at the money. They are also asked to decide whether to exercise the option, calculate the dollar profit, and determine the percentage return. However, the actual options and information are not provided in the question.
Step-by-step explanation:
The student is asked to analyze options based on information provided and determine whether they are in the money, out of the money, or at the money. They are also asked to decide whether to exercise the option, calculate the dollar profit, and determine the percentage return. However, the actual options and information are not provided in the question. Without this information, it is not possible to provide a specific answer.
To determine whether an option is in the money, out of the money, or at the money, you need to compare the strike price of the option to the current market price of the underlying asset. If the strike price is lower than the market price for a call option or higher for a put option, it is in the money. If the strike price is higher for a call or lower for a put, it is out of the money. If the strike price is equal to the market price, it is at the money.
To decide whether to exercise an option, it depends on whether it is in the money or not. If an option is in the money and it is beneficial for the buyer to exercise it, they can make a profit by selling the underlying asset at the higher market price. If an option is out of the money, it is not beneficial for the buyer to exercise it. If an option is at the money, the buyer may choose to exercise it based on their assessment of market conditions.