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 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 forward market in periods 0, 1, 2 and 3 are respectively

		0, 0, 0 and +100
		0, 0, 0 and +110
		+100, +50, -20 and +70
		None of these are the correct cash flows
		+100, 0, 0 and -100