Question

Does C# 4.0 allow optional out or ref arguments?

Answer 1

As already mentioned, this is simply not allowed and I think it makes a very good sense.
However, to add some more details, here is a quote from the C# 4.0 Specification, section 21.1:

Formal parameters of constructors, methods, indexers and delegate types can be declared optional:

fixed-parameter:
    attributes_opt parameter-modifier_opt type identifier default-argument_opt
default-argument:
    = expression

• A fixed-parameter with a default-argument is an optional parameter, whereas a fixed-parameter without a default-argument is a required parameter.
• A required parameter cannot appear after an optional parameter in a formal-parameter-list.
• A ref or out parameter cannot have a default-argument.