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 increases, and the dividend for the underlying asset decreases.

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

a. Only 1 and 2 are correct

b. Only 3 is correct

c. Only 1 is correct

d. Only 2 and 3 are correct

e. Only 2 is correct