Travis owns a stock that is currently valued at $45.80 a share. He is concerned that the stock price may decline so he just purchased

1.

Travis owns a stock that is currently valued at $45.80 a share. He is concerned that the stock price may decline so he just purchased a put option on the stock with an exercise price of $45. Which one of the following terms applies to the strategy Travis is using?    A.  put-call parity B.  covered call C.  protective put D.  straddle E.  strangle Refer to section 25.1

2.

Put-call parity is defined as the relationship between which of the following variables? I. risk-free asset II. underlying stock price III. call option IV. put option    A.  I and II only B.  II and III only C.  II, III, and IV only D.  I, II, and III only E.  I, II, III, and IV Refer to section 25.1

3.	Assume the price of Westward Co. stock increases by one percent. Which one of the following measures the effect that this change in the stock price will have on the value of the Westward Co. options?    A.  theta B.  vega C.  rho D.  delta E.  gamma Refer to section 25.3

4.	Which one of the following defines the relationship between the value of an option and the option's time to expiration?    A.  theta. B.  vega. C.  rho. D.  delta. E.  gamma. Refer to section 25.3