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I have a face-up "Stardust Dragon".  My opponent has a Set "Torrential Tribute".  I Tribute Summon "Caius the Shadow Monarch".

1.  Is the effect of "Caius the Shadow Monarch" optional or mandatory?

2.  If I target "Torrential Tribute" with the effect of "Caius the Shadow Monarch", my opponent chains with "Torrential Tribute" and I chain with the effect of "Stardust Dragon".  Will "Torrential Tribute" be removed from play by the effect of "Caius the Shadow Monarch"?

"Caius the Shadow Monarch" has a mandatory Trigger Effect which must activate.  When you successfully Tribute Summon "Caius the Shadow Monarch", its effect activates and you choose your target at activation. After you've chosen your target, your opponent has the option to chain to the effect of "Caius the Shadow Monarch".

If the owner of "Caius the Shadow Monarch" decided to target "Torrential Tribute", it will be removed from play by the effect of "Caius the Shadow Monarch".  Spell Cards and Trap Cards are not sent to the Graveyard until the chain has finished resolving, so "Torrential Tribute" will still be on the Field to be removed by "Caius the Shadow Monarch".

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Destroying a marked for destruction card is different from sending a marked for destruction card.

http://entertainment.upperdeck.com/yugioh/en/gameplay/faqs/advancedgameplay/default.aspx

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