C, B and C.
However, for takeoff, only with update 10.8 or greater and only with VNAV armed for takeoff (LVL CHG is not an appropriate mode for S/E flap retraction, hence not used for S/E G/A).
Having said that, we've only just started practising S/E takeoff with autopilot at 400' in the sim, so I doubt many of us would bother attempting it in a real situation until we are more practised at the technique. But it certainly works well, provided particular attention is paid to trim.
I think it's great to have the option, and to practice both - there may be times when hand flying is appropriate and also times when maximum use of automation is appropriate.
For example, suppose it's not JUST an engine failure. Maybe you have a smoke filled cockpit and a face full of windshield glass from the flock of geese that also took out the engine and you look around and your colleague has been decapitated by said geese, your bifocals are smashed on the cockpit floor along with your headset, and the fire warning is still blaring - there is a little button that can make your life a little easier: A/P CMD).