The price of a futures contract to buy 100 bushels of wheat is $2.50 per bushel. At the end of the day the
buying price of wheat rose to S3 per bushel:
A. The buyer (buy position) needs to transfer $50 to the seller (sell position)
B. The seller (sell position) needs to transfer 550 to the buyer (buy position)
C. no action is required as in futures contracts all payments are made on the settlement date
D. no action is required since market adjustments occur only when the market price falls below the
contract price.