1. 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

2. The potential profits from writing a covered call position with X S0 on a stock are: A. limited to the (FV of) premium.

B. limited to the (FV of) premium plus stock appreciation up to the exercise price.

C. greater than the potential profits from owning the stock.

D. there is no upper limit on the profits.