According to put-call parity, buying a call option and shorting a put option on the same stock, where both options have the same maturity and strike price, is equivalent to:

1.Selling a stock and selling a bond

2.Selling a stock and buying a bond

3.Buying a stock and buying a bond

4.Buying a stock and selling a bond

All else equal, the increase in which of the following value will cause the price of a call option to decrease?

1.Volatility

2. Expected return of the underlying asset

3. Expected dividend of the underlying asset

4. The market price of the underlying asset