Question: Answer this question based on the following three statements: 1. An investor who bought a stock and sold a call option on this stock would
Answer this question based on the following three statements: 1. An investor who bought a stock and sold a call option on this stock would clearly profit if the stock price increased sharply. 2. The value of a put increases when the time to expiration increases, the risk-free rate of return decreases, and the dividend for the underlying assets increases. 3. Call option holder can earn, at most, the premium of the option. O a. Only 2 and 3 are correct. O b. Only 3 is correct. O c. Only 2 is correct. O d. Only 1 is correct. e. Only 1 and 2 are correct
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