Help formatting Pictures inside a Text Box in Word 2013

[jstumbo87]

The title pretty much says it all. I am attempting to insert a picture inside a text box that includes text. My "text wrapping" and "position" options are grayed out so I cannot insert the picture with "tight" wrapping. The result is my text is getting split into a top and bottom section and my picture cannot be moved from the center of the the text box. I want the text to react to the picture as if it had tight wrapping. Any help would be greatly appreciated.