B. Compare an American call with a strike of 50 which expires in 90 days to an American call on the same underlying asset which has a strike of 60 and expires in 120 days. The underlying asset is selling at 55. Consider the following statements: I "The 50 strike call is in the money and the 60 strike call is out of the money." I" The time value of the 60 strike call, as a proportion of the 60 strike call's premium, exceeds the time value of the 50 strike call as a proportion of the 50 strike call's premium." Are the statements most likely correct or incorrect? C Both statements are correct. a. Statement I is incorrect, but statement 2 is correct. b. Statement 1 is correct, but statement 2 is incorrect. c