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When Selecting Among Various Put Options with Different Strike Prices,in

Question 1

Multiple Choice

When selecting among various put options with different strike prices,in order to hedge a long asset position,which of the following statements is true?


A) Higher strike puts cost more and provide higher floors
B) Higher strike puts cost less and provide higher floors
C) Lower strike puts cost more and provide higher floors
D) Lower strike puts cost less and provide higher floors

Correct Answer:

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