both 1b and 1c, thanks

1b. (2 marks) Which of the following is false for American options? A. Both calls and puts increase in value when volatility increases, all else remaining the same. B. Both calls and puts increase in value when time to maturity increases, all else remaining the same. c. Calls increase in value while puts decrease in value when the interest rate in- creases, all else remaining the same. D. Puts increase in value while calls decrease in value when dividends increase, all else remaining the same. E. None of the above. lc. (2 marks) ISX Inc. stock is selling for $54.70 per share. Calls and puts with a $55 strike and 40 days until expiration are selling for $1.65 and $1.23, respectively. Assume the interest rate is 0%. What potential arbitrage profit exists? A. $0.12 $0.72 $0.42 $0.30 None of the above