In a Second-Price Sealed-Bid Auction with Private Values, the Winner

Multiple Choice

In a second-price sealed-bid auction with private values, the winner of the auction is:

A) the second-highest bidder and pays the bid of the highest bidder.
B) the second-highest bidder and pays the bid of the third-highest bidder.
C) the highest-bidder and pays the bid of the second-highest bidder.
D) the highest-bidder and pays the amount they bid.