Which of the following are true concerning short sales of exchange-listed stocks?

I. Proceeds from the short sale must be kept on deposit with the broker.

II. Short sellers must find shareholders who can lend them stocks directly.

III. Short sellers cover their short positions by selling the stock to the counterparty from which it was borrowed.

A. I and II only

B. I and III only

C. I only

D. I, II and III