Question: You are selecting among various put options with different strike prices to hedge a long asset position. Which of the following statements is true? Give

You are selecting among various put options with different strike prices to hedge a long asset position.

Which of the following statements is true? Give your reasoning.

(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.

(E) The strike price does not matter at all.

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