A student made the following three statements about a rights issue 1. If all rights holders are rational then they all will decide in the same way whether to participate in a rights issue or not 2. A rights issue is similar to holding a put option when the exercise price is the subscription price 3. All things equal if the difference between the market price and the subscription price (m-s) is lower, the price at which right is traded is likely to be lower than the calculated price of the right using the formula R = n(m-s)/(n+1) Which of the student's argument are correct? O a) Only argument 1 Ob) Only argument 2 c) Only argument 3 d) Arguments 1 and 2 but not 3