Which of the following statements are FALSE?

Call options with strike prices above the current stock price are in-the-

I.

money, as are put options with strike prices below the current stock price.

2. Because a put is the right to sell the stock, puts with a lower strike price are

   more valuable.

3. A put option cannot be worth more than its strike price.

4. It is never optimal to exercise a call option on a dividend-paying stock

   earlyyou are always better off just selling the option.

1. IIIonly

2. IandIVonly

3. I, II and IV only

4. I,II,IIIandIV