How to convert illustrator file containing a photograph to grayscale when the "convert to grayscale" option is grayed out?

It's been several years since I've done any design work at all. I recently got a job as a designer, and on my first day I had to create an ad in illustrator 5.5 (required to be in illustrator) for print in a black and white publication. There was even an ad template to use. I placed the photo and tried to use the "convert to grayscale" option but everything under the edit colors menu was grayed out. I know it's because of the photo. In the end I changed the photo to grayscale in photoshop and replaced the image, but I know there is another way around this. Can someone please help me figure out how to fix this issue?
Thank you so much in advance!

If the placed image is linked, Edit Colors will not allow conversion to grayscale; however, an embedded image will work just fine. The flyout menu in the Links Panel allows you to embed the image.
Peter

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