... 23PRICING OPTIONSA call option confers on its owner the right to buy; the seller (writer) of the call has the obligation to sell, if asked(exercised). In theory, there is no limit to the profit poten-tial ... premium of 7.50,whereas the underlying stock is trading at 66.25.1. Is the option in the money, out of the money, or at the money?2. What is the option’s intrinsic value, if any?3. What is the ... points out of the money. The option has nointrinsic value. Again, the price of the option itselfmakes no difference.●If XYZ is trading exactly at 50, then the 50 call is at the money. Someone exercising...