Somewhere around MC 6 or 7 they changed the options selection from a tab at the top to a keyboard shortcut. If there is no 'Options' tab at the very top, try pressing 'P' on the computer keyboard.
Do you know what sound card or audio interface you're using? If it's the computer's sound card and the audio driver is ASIO, or even WDM/KS, that may not work with many stock sound cards. Then you're stuck with using the MME driver mode, which is a terrible choice for live recording due to it's inherent latency.
And welcome to the forum.