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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 short the

  1. Kelloggs buys rice futures to hedge their exposure to changing input prices in making cereal. They would be considered
    1. Long the hedge and short the Basis
    2. Long the hedge and long the Basis
    3. Short the hedge and short the Basis
    4. Short the hedge and long the Basis

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