Question: 4) Options Theory and Terms 4a) Define the following aspects (or types) of options: Option price Strike price Exercise Price Expiration American Option versus European

4) Options Theory and Terms 4a) Define the following aspects (or types) of options: Option price Strike price Exercise Price Expiration American Option versus European Option Call Option Putt Option Straddle Call Spread Put Call Parity (include the equation and a very brief explanation of why it holds) 4b) Please note under what conditions an investor would: Buy a Call Buy a Call Spread Buy a Put Buy a Put spread Buy a Straddle Sell a Straddle 5) Options in practice Given the following information

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