3. On June 23 traders A and B traded one July 16 wheat futures contract at $4.2775/bu. Trader A went short and trader B went long, and they are both speculators. Initial and maintenance margins for speculators are $4,000/contract and $3,000/contract respectively. Both traders carry their position until July 6 when they offset it at the settlement price. Prices for this contract between June 23 and July 6 are given below. After carefully analyzing the account for trader A, complete the account for trader B. (20 points) *Remember that a margin call should be met promptly, or the broker will close your position at the market rate.

Trader A's Account: A Short side gains if price drops. Equity Equity Total Change Change in before Daily after mark- Equity Amount Settle in price contract mark-to- gain/loss to-market Margin margin invested Date ($/bu.) ($/bu.) value ($) market ($) ($) ($) call ($) call ($) ($) 23-Jun-16 4.2775 4,000.00 0.00 4,000.00 4,000.00 24-Jun-16 4.2275 0.0500 250.00 4,000.00 250.00 4,250.00 0.00 4,250.00 4,000.00 27-Jun-16 4.1275 0.1000 500.00 4,250.00 500.00 4,750.00 0.00 4,750.00 4,000.00 28-Jun-16 4.0875 0.0400 200.00 4,750.00 200.00 4,950.00 0.00 4,950.00 4,000.00 29-Jun-16 4.0000 0.0875 437.50 4,950.00 437.50 5,387.50 0.00 5,387.50 4,000.00 30-Jun-16 4.0425 -0.0425 -212.50 5,387.50 -212.50 5,175.00 0.00 5,175.00 4,000.00 1-Jul-16 3.9425 0.1000 500.00 5,175.00 500.00 5,675.00 0.00 5,675.00 4,000.00 5-Jul-16 4.0200 -0.0775 -387.50 5,675.00 -387.50 5,287.50 0.00 5,287.50 4,000.00 6-Jul-16 4.0050 0.0150 75.00 5,287.50 75.00 5,362.50 0.00 5,362.50 4,000.00 Total gain/loss as of 7/6/2016 1362.50 Trader B's Account: A long side loses if price drops. Equity Equity Total Change Change in before Daily after mark- Equity Amount Settle in price contract mark-to- gain/loss to-market Margin margin invested Date ($/bu.) ($/bu.) value ($) market ($) ($) ($) call ($) call ($) ($) 23-Jun-16 4.2775 4,000.00 0.00 4,000.00 4,000.00 24-Jun-16 4.2275 27-Jun-16 4.1275 28-Jun-16 4.0875 29-Jun-16 4.0000 30-Jun-16 4.0425 1-Jul-16 3.9425 5-Jul-16 4.0200 6-Jul-16 4.00501 Total gain/loss as of 7/6/2016 *Remember that a margin call should be met promptly, or the broker will close your position at the market rate. Trader A's Account: A Short side gains if price drops. Equity Equity Total Change Change in before Daily after mark- Equity Amount Settle in price contract mark-to- gain/loss to-market Margin margin invested Date ($/bu.) ($/bu.) value ($) market ($) ($) ($) call ($) call ($) ($) 23-Jun-16 4.2775 4,000.00 0.00 4,000.00 4,000.00 24-Jun-16 4.2275 0.0500 250.00 4,000.00 250.00 4,250.00 0.00 4,250.00 4,000.00 27-Jun-16 4.1275 0.1000 500.00 4,250.00 500.00 4,750.00 0.00 4,750.00 4,000.00 28-Jun-16 4.0875 0.0400 200.00 4,750.00 200.00 4,950.00 0.00 4,950.00 4,000.00 29-Jun-16 4.0000 0.0875 437.50 4,950.00 437.50 5,387.50 0.00 5,387.50 4,000.00 30-Jun-16 4.0425 -0.0425 -212.50 5,387.50 -212.50 5,175.00 0.00 5,175.00 4,000.00 1-Jul-16 3.9425 0.1000 500.00 5,175.00 500.00 5,675.00 0.00 5,675.00 4,000.00 5-Jul-16 4.0200 -0.0775 -387.50 5,675.00 -387.50 5,287.50 0.00 5,287.50 4,000.00 6-Jul-16 4.0050 0.0150 75.00 5,287.50 75.00 5,362.50 0.00 5,362.50 4,000.00 Total gain/loss as of 7/6/2016 1362.50 Trader B's Account: A long side loses if price drops. Equity Equity Total Change Change in before Daily after mark- Equity Amount Settle in price contract mark-to- gain/loss to-market Margin margin invested Date ($/bu.) ($/bu.) value ($) market ($) ($) ($) call ($) call ($) ($) 23-Jun-16 4.2775 4,000.00 0.00 4,000.00 4,000.00 24-Jun-16 4.2275 27-Jun-16 4.1275 28-Jun-16 4.0875 29-Jun-16 4.0000 30-Jun-16 4.0425 1-Jul-16 3.9425 5-Jul-16 4.0200 6-Jul-16 4.00501 Total gain/loss as of 7/6/2016 *Remember that a margin call should be met promptly, or the broker will close your position at the market rate