William Cambridge is an equity portfolio manager at Allgood Securities. Cambridge owns a stock with a market price of $85. A put option on the stock with an exercise price of $80 sells for $2.60. Brown is considering buying the put option to complement his long stock position. When discussing this strategy with a colleague, Cambridge makes the following statements:

Statement #1:	Although my strategy exposes me to unlimited loss potential, I will follow it because I believe in taking risks to earn extra returns.
Statement #2:	My strategy is relatively aggressive because it involves the use of derivatives.

Cambridge is correct with respect to:

A) statement 1 only.

B) statement 2 only.

C) neither statement 1 nor statement 2.