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Consider the following statements concerning options. 1. An out of-the-money call option (Strike pricesmarket price) is worthiless 3 months before the expiry date. 2. An

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Consider the following statements concerning options. 1. An out of-the-money call option (Strike pricesmarket price) is worthiless 3 months before the expiry date. 2. An American-style option can be exercised at any time up to, and including, the expiry date. Which one of the following combinations (true/false) relating to the above statements is correct? Statement 1 is false, statement 2 is true Both statements are false Statement 1 is true, statement 2 is false Both statements are true

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