Select the best answer and please also provide your explanation

Debt and equity are often said to represent portfolios that include real options. Which of the following explains why equity holders sometimes prefer to increase volatility and debtholders always oppose it?

Group of answer choices

a) The value of both call and put options increase with volatility, but in equity you buy a call option whereas in debt you sell a put option

b) The value of both call and put options decrease with volatility, but in equity you sell a call option whereas in debt you buy a put option

c) The value of a call option increases with volatility, but the value of a put option decreases with volatility

d) The value of a call option decreases with volatility, but the value of a put option increases with volatility

e) None of the above is correct