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Kelloggs buys rice futures to hedge their exposure to changing input prices in making cereal....

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Kelloggs buys rice futures to hedge their exposure to changing input prices in making cereal. They would be considered... Long the hedge and long the basis Long the hedge ans short the basis Short the hedge and long the basis Short the hedge and short the basis A trader buys a 3 month American put option with a strike price of $50 for $2.50. The underlying stock is trading at $49. What is the intrinsic value of the option? $0 $1 $2.50 $2.50 $1.50 A trader buys a 3 month American call option with a strike price of $50 for $5. The underlying stock is trading at $53. What is the time value of the option? $3 $3 $0 $5 $2 A trader bought a three month European Call on BAC for $1.50. The call has a strike price of $15. At expiration what price does BAC need to trade at for the trader to break even? $17.50 $1.50 $16.50 $15.50 $13.50

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