29. True or False: An option that has zero intrinsic value will still have time value. 30. A short hedger is considering the use of an options contract to manage risk. This hedger should: a. buy a call option b. buy a put option c. sell a call option 31. True or False: A put option has a strike price of $1.00 and the futures price at expiration is $2.00, this option would be exercised. 32. The primary disadvantage for a short hedger with trading a short collar versus buying an appropriate option is: a. the short collar establishes a price ceiling b. the short collar costs more to acquire c. the short collar does not establish a price floor d. the short collar does not reduce price risk at all 33. Nervous Purvis produces soy bean meal and is thinking about trading an option and/or a futures contract to hedge his next PURCHASE of soybeans. Based on the choice below Purvis should: a. short a futures contract b. buy a call option c. buy a put option d. establish a short collar 34. A put option has a premium of $50, the strike price for the option is $400 and the futures price today is $500. Assume the risk free rate is 0. The option has time value of (assume discount rate is 0): a. $50 b. $0 c. $-100 d. $100 35. True or False: It is not possible to offset the purchase of a put option with the purchase of a call option. 36. True or False: A call option has a strike price of $1.00 the futures price at expiration is $2.00, this option would be exercised