Determine which of the following statements about a long stock and a long K₁-K₂ collared stock is/are always correct.

I. Both are long with respect to the underlying stock.

II. The long collared stock requires a lower amount of initial investment than the long stock.

III. The long collared stock has a higher payoff than the long stock when the stock price at expiration is sufficiently high.

(A) I only

(B) II only

(C) III only

(D) I and III only

(E) The correct answer is not given by (A), (B), (C), or (D)