There Is a Futures Contract for the Purchase of 1,000

Multiple Choice

There is a futures contract for the purchase of 1,000 bushels of corn at $3.00 per bushel. At the end of the day when the market price of corn falls to $2.50:

A) the buyer (long position) needs to transfer $500 to the seller (short position) .
B) the seller (long position) needs to transfer $500 to the buyer (short position) .
C) nothing happens since marked to market adjustments only occur if the market price rises above the contract price.
D) nothing happened since no funds are transferred until the settlement date.