Question Completion Status: Today (t=0) one party goes short a futures contract and another sells a forward contract on the same commodity. The prices at t = 0, 1, 2, 3 where 3 = T = maturity are OF3 = 100 1F3 = 140 2F3 = 110 3F3 = 110 Assume that both contracts are held to maturity. Assume the commodity delivered at T = 3 is taken from previously held inventory. Assume that initial margin is met with previously bought T-Bills. The cash flows to the trader in the futures market in periods 0, 1, 2 and 3 are respectively +100, +50, -20 and +70 0, 0, 0, and +100 0, +40, -30 and +90 20 and DELL Assume the commodity delivered at T = 3 is taken from previously held inventory. Assume that initial margin is met with previously bought T-Bills. The cash flows to the trader in the futures market in periods 0, 1, 2 and 3 are respectively +100, +50, -20 and +70 0, 0, 0, and +100 0, +40, -30 and +90 O, -40, +30 and 110 Question Completion Status: Today (t=0) one party goes short a futures contract and another sells a forward contract on the same commodity. The prices at t = 0, 1, 2, 3 where 3 = T = maturity are OF3 = 100 1F3 = 140 2F3 = 110 3F3 = 110 Assume that both contracts are held to maturity. Assume the commodity delivered at T = 3 is taken from previously held inventory. Assume that initial margin is met with previously bought T-Bills. The cash flows to the trader in the futures market in periods 0, 1, 2 and 3 are respectively +100, +50, -20 and +70 0, 0, 0, and +100 0, +40, -30 and +90 20 and DELL Assume the commodity delivered at T = 3 is taken from previously held inventory. Assume that initial margin is met with previously bought T-Bills. The cash flows to the trader in the futures market in periods 0, 1, 2 and 3 are respectively +100, +50, -20 and +70 0, 0, 0, and +100 0, +40, -30 and +90 O, -40, +30 and 110