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:

₀F₃ = 100 ₁F₃ = 140 ₂F₃ = 110 ₀F₃ = 100

Assume that both contracts are held till maturity.

Assume the commodity delivered at T = 3 is taken from previously held inventory.

Assume that initial margin is met with T-Bills.

Consider any appropriate daily marking-to-the-market transfers and assume that these transfers have a positive time value of money associated with them.

Which of the parties would have been better off in this example?

		the trader in the futures market
		need to know more information to answer this question
		there is no difference
		the trader in the forward market