The following European-style options are held at their expiry date by an investor: 1. A call option of 20,000 shares in Peterhouse plc with an exercise price of 860p. The market price of the shares at the expiry date is 880p. 2. A put option of 600,000 in exchange for euros at a strike rate of 1 = 1.5. The exchange rate at the expiry date is 1 = 1.45. Which one of the above combinations (exercise/lapse) concerning the options should be undertaken by the investor? A Option 1 - Exercise, Option 2 - Lapse - B Option 1 - Exercise, Option 2 - Exercise Option 1 - Lapse, Option 2 - Lapse D Option 1 - Lapse, Option 2 - Exercise