per share Stock XYZ is selling for $40 a share. An American put option on this stock with a strike price of $38 is trading at $5 Which of the following statements is correct? a the put is out of the money b. you can make arbitrage profit by writing the put because it is priced above intrinsic value Oc. the put is in the money O d. you can make arbitrage profit by buying the put and exercising it immediately When would the price of a call option be higher, all else equal? a. When the risk-free interest rate is higher O b. When volatility of the underlying security is lower O c. When the price of the underlying security is lower Od. When the option's strike price is higher