Assume you pay a premium of $0.50/bu for a soybean call option with a strike price of $9.20/bu and that the current futures price is $8.90/bu. What is the option's current intrinsic value?

In a market, the rationing function of prices results in

A) long waiting lines. B) a price ceiling. C) an equilibrium between supply and demand. D) a shortage or surplus.

(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. Given the initial equilibrium of S1 and D, any price lower than ________ will create pressure for the price to ________.

A) $3.00; rise B) $2.00; fall C) $2.50; fall D) $2.50; rise