Choose the correct code for the following statements being correct or incorrect.
Statement I: An option which gives its holder the privilege of selling to other party a fixed amount of some stock at a stated price on or before a predetermined date is known as call option.
Statement II : In an option, the holder has the privilege of purchasing from other party a fixed amount of some stock at a stated price on or before a predetermined date is known as put option.
1
Both the statement I and II are correct.
2
Both the statement I and II are incorrect.
3
Statement I is correct, but II is incorrect.
4
Statement II is correct, but I is incorrect.