Which One of the Following Statements Concerning Option Payoffs Is

Multiple Choice

Which one of the following statements concerning option payoffs is correct?

A) The buyer of a call profits when the exercise price exceeds the market price.
B) The buyer of a call profits when the strike price exceeds the exercise price.
C) A put will only be exercised if both the seller and the buyer can profit.
D) Both the buyer and the seller profit when a call is exercised.
E) The seller of a put incurs a loss when a put is exercised.