QUESTION $16$

Prior to harvest you set a pre$-$spread in anticipation of buying $100,000$ bushels of wheat during June basis the JUL futur

and selling it in October basis the DEC futures at a spread of $\mathrm{.}20$ carry.

You purchase $100,000$ bushels of wheat during harvest at $+5$JUL and execute the appropriate futures transaction.

What is your open futures position after these transactions are completed?

Short $20$JUL

Long $20$ DEC $/$ Short $20$ JUL

Long $20$ DEC

Short $20$ DEC