Problem 20 Traders A and B are speculators in the corn futures market. In January, the futures price of corn deliverable in September was $4.00 per bushel. Trader A believed that the price of corn would be above $4.00 per bushel by September. Trader B believed the opposite, that the price would be below $4.00 per bushel by September. Both traders entered futures positions accordingly. One month later, in February, market expectations adjust. The futures price of corn deliverable in September is now $4.30 per bushel. Both traders exist their positions. Which of the following statements is incorrect? a. Trader A entered the contract long, and trader B entered the contract short b. Trader A made money, and trader B lost money C. Trader A is obligated to take delivery, and trader B is obligated to make delivery upon exit d. Both accounts of traders A and B have been marked to market by the time of exit

Traders A and B are speculators in the corn futures market. In January, the futures price of corn deliverable in September was $4.00 per bushel. Trader A believed that the price of corn would be above $4.00 per bushel by September. Trader B believed the opposite, that the price would be below $4.00 per bushel by September. Both traders entered futures positions accordingly. One month later, in February, market expectations adjust. The futures price of corn deliverable in September is now $4.30 per bushel. Both traders exist their positions. Which of the following statements is incorrect? a. Trader A entered the contract long, and trader B entered the contract short b. Trader A made money, and trader B lost money c. Trader A is obligated to take delivery, and trader B is obligated to make delivery upon exit d. Both accounts of traders A and B have been marked to market by the time of exit