Which of the following statements is true?

Select one:

a. The option writer has a long position and the option holder has a short position.

b. Both the option holder and the option writer have a long position when the option is out-of-the-money and they both have a short position when the option is in-the-money.

c. The option holder has a long position and the option writer has a short position.

d. Both the option holder and the option writer have a long position when the option is in-the-money and they both have a short position when the option is out-of-the-money.