An investor owns 1,000 Microsoft shares currently worth $28 per share. Which of the following strategies can help the investor to hedge the risk of the investment by locking in a sale price or fixing a minimum sale price? Assume Microsoft shares are the underlying asset of all the contracts.

a.

A long position in a put option.

b.

A long position in a futures contract.

c.

A long position in a forward contract.

d.

A short position in call option.

The rate of change of an options delta with respect to the price of the underlying asset is measured by:

a.

rho

b.

vega

c.

theta

d.

gamma