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The imaginary line around the Earth that is parallel to the equator is referred to as latitude. Latitude is a geographical coordinate that specifies the north-south position of a point on the Earth's surface. Lines of latitude, also known as parallels, run horizontally and measure the distance north or south of the equator, which is at 0 degrees latitude. These lines are critical for navigation, mapping, and understanding Earth's geography, as they help identify locations in relation to the equator and each other.

In contrast, the other options do not pertain to this concept. Larva refers to the juvenile form of insects and some other organisms, latex is a natural or synthetic material used in various products, and lever is a simple machine that consists of a rigid bar pivoting around a fulcrum, related to physics but not geography. Thus, latitude is the correct term that describes an imaginary line around the Earth parallel to the equator.