Which of the following statements are correct?<br>1. A put option is said to bein the money or favourable for the option holder when the strike price is higher than the spot price.<br>2. A put option is said to be out of money when the strike price is lower than the market price.<br>3. Fir an option writer the maximum gain is the amount of premium received by the put option holder.

Correct Answer: Both 1 and 3