On 1 April 20x6, ABC Company entered into a contract to sell 10,000 shares in XYZ Company for delivery on 30 June 20x6 at a price that is not below $3.00 per share and not higher than $4.00 per share. The current market price is $3.50. Which of the following statements is correct?

(a) The contract has an embedded long call option with a strike price of $3.00 and an embedded long put option with a strike price of $3.00.

(b) The contract has an embedded call option with a strike price of $3.00 and an embedded written (short) put option with a strike price of $4.00.

(c) The contract has an embedded written (short) call option with a strike price of $4.00 and an embedded (long)

put option with a strike price of $3.00.

(d) The contract has an embedded (long) call option with a strike price of $3.00 and an embedded (long) put option with a strike price of $4.00.