Answer this question based on the following three statements:

1. An investor who bought the underlying stock and simultaneously sold a call option on it would clearly profit if the stock price increased sharply

2. The value of a call increases when the time to expiration increases, the risk-free rate of return decreases, and the dividend for the underlying assets decreases

3. Call option writer can earn, at most, the premium of the option

a. only 1 is correct

b. only 1 and 2 are correct

c. only 2 is correct

d. only 3 is correct

e. only 2 and 3 are correct