13. The slope of the security market line is A. equal to one. B. beta. C. market risk premium. D. Sharpe ratio. 14. The current stock price of SNB is $29. A 3-month call option on SNB has a strike price of $35. The call option is _________. A. at-the-money B. out-of-the-money C. in-the-money D. None of the above. 15. A firm planning to sell oil might anticipate a period of market volatility and wish to protect its revenue against price fluctuations. To hedge the total revenue from the sale, the firm: A. enters a long position in oil futures or purchase a call option on oil. B. enters a long position in oil futures or purchases a put option on oil. C. enters a short position in oil futures or purchase a call option on oil. D. enters a short position in oil futures or purchases a put option on oil.