An Up-And-Out Put May Be Preferred to a Vanilla Put

Multiple Choice

An up-and-out put may be preferred to a vanilla put

A) Because it results in higher payoffs in all circumstances.
B) Because it sometimes pays off even when the stock price rises whereas the vanilla only pays off when the stock price falls.
C) By an Investor with strong directional views because it is a cheaper form of taking on a directional bet.
D) By an investor more concerned with direction than volatility because the down-and-out put always reacts negatively to volatility unlike the vanilla put.