  We compute the recoil polarization of the lambda-hyperon and the photon
asymmetry for the quasifree photoproduction of kaons in a relativistic
impulse-approximation approach. Our motivation for studying polarization
observables is threefold. First, polarization observables are more effective
discriminators of subtle dynamics than the unpolarized cross section. Second,
earlier nonrelativistic calculations suggest an almost complete insensitivity
of polarization observables to distortions effects. Finally, this insensitivity
entails an enormous simplification in the theoretical treatment. Indeed, by
introducing the notion of a ``bound-nucleon propagator'' we exploit Feynman's
trace techniques to develop closed-form, analytic expressions for all
photoproduction observables. Moreover, our results indicate that polarization
observables are also insensitive to relativistic effects and to the nuclear
target. Yet, they are sensitive to the model parameters, making them ideal
tools for the study of modifications to the elementary amplitude --- such as in
the production, propagation, and decay of nucleon resonances --- in the nuclear
medium.
