pls answer

Part 1: Answer each of the following MC questions 1. An out-of-the-money call option is one that: a. has an exercise price below the current market price of the underlying security. b. should not be exercised. c. has an exercise price above the current market price of the underlying security d. Both has an exercise price below the current market price of the underlying security; and should not be exercised. Both should not be exercised: and has an exercise price above the current market price of the underlying security. 2. Given an exercise price. time to maturity, and put-call parity, the present value of the strike price plus the call option is equal to: a. the current market value of the stock. b. the present value of the stock minus a put option. c. a put option minus the market value of the share of stock. d. the value of a U.S. Treasury bill. c. the share of stock plus the put option. 3. The lower bound on a call's value is either the: a. strike price or zero, whichever is greater. 6. stock price minus the exercise price or zero, whichever is greater. c. strike price or the stock price, whichever is lower. d. strike price or zero, whichever is lower. e. stock price minus the exercise price or zero, whichever is lower. 4. You sold a put contract on EDF stock at an option price of $0.40. The option had an exercise price of $20. The option was exercised when the stock is selling for $19 a share. What is your total profit or loss on all of your transactions related to EDF stock. a. -$140 b. -$60 c. $40 d. $60 e. $140 5. Which one of the following will cause the value of a call to decrease? a. lowering the exercise price b. increasing the time to expiration c. increasing the risk-free rate . lowering the risk level of the underlying security e. increasing the stock price