An American put option is always worth at least its intrinsic value because:

1. It only makes sense to exercise the contract if it is in-the-money.
2. The time-value of an American put option is always non-negative.
3. An American put is always worth more than a European put.

Group of answer choices

a. Only 1. is correct.

b. Only 2. is correct.

c. Only 3. is correct.

d. Only 1. and 2. are correct.

e. All 1., 2. and 3. are correct.