Assume that on October 1, 2016, Alex sold William an S&P 500 stock-index future contract that had January 1, 2017, expiration date. The futures price was 2210 on Oct. 1, 2016. Assume that the futures price and the S&P index did not change until January 1, 2017, when the S&P index changed to 2240. Assume that neither of them reversed out of the futures contract.

1. What are the legal considerations for Alex and William on Oct 1, 2016?

2. On expiration, Jan 1, 2017, what did Alex and William give each other?