Please answer all questions, No Explanation need it, Thank you very much!

The defining characteristic of an option is its "optionality": the holder has the: obligation to participate in the specified trade but not the right to do so. requirement to participate in the specified trade but not the right to do so. duty to participate in the specified trade but not the right to do so. right to participate in the specified trade but is not obligated to do so. Question 2 2.5pts In a forward contract, "long" and "short" refer, respectively, to the in the trade underlying the contract. buyer and seller seller and speculator buyer and mediator seller and buyer Question 3 2.5pts Insurance, in general, offers protection from: bad investments every type of risk unpleasant surprises abnormal profits Question 4 2.5pts Consider a call option to buy Starbucks common stock at a strike price of K=$87.50 If the stock price is $86.40, the call is: in-the-money out-of-the-money over-the-money at-the-money