A. If you think the spread will narrow (i.e., corn price will improve relative to wheat) your strategy will be to: (circle the correct answer) i. Buy Dec Com@ @6.92, Sell Dec HRW @ \$9.89 ii. Buy Dec HRW @ \$9.89, Sell Dec Corn@\$6.92 October 17: Dec HRW wheat at $10.24/bu; Dec corn at $6.98/bu Calculate profit or loss on the spread (per bushel). B. If you think the spread will widen (i.e., wheat price will improve relative to corn) your strategy will be to: (circle the correct answer) i. Buy Dec Com@ \$6.92, Sell Dec HRW@\$9.89 ii. Buy Dec HRW@\$9.89, Sell Dec Corn@\$6.92 October 17: Dec HRW wheat at $9.89/bu; Dec corn at $6.92/bu Calculate profit or loss on the spread (per bushel). Method 2: Find the change in the spread. October 7: March is Dec. October 17: March is Dec. Spread widened / narrowed by You expected the spread to widen. You gained / lost . (Also circle widened or narrowed and gained or lost, respectively). (On October 7, you bought the spread at On October 17, you sold the spread at You gained / lost /bu). (Fill in blanks and circle gained or lost.) A. If you think the spread will narrow (i.e., corn price will improve relative to wheat) your strategy will be to: (circle the correct answer) i. Buy Dec Com@ @6.92, Sell Dec HRW @ \$9.89 ii. Buy Dec HRW @ \$9.89, Sell Dec Corn@\$6.92 October 17: Dec HRW wheat at $10.24/bu; Dec corn at $6.98/bu Calculate profit or loss on the spread (per bushel). B. If you think the spread will widen (i.e., wheat price will improve relative to corn) your strategy will be to: (circle the correct answer) i. Buy Dec Com@ \$6.92, Sell Dec HRW@\$9.89 ii. Buy Dec HRW@\$9.89, Sell Dec Corn@\$6.92 October 17: Dec HRW wheat at $9.89/bu; Dec corn at $6.92/bu Calculate profit or loss on the spread (per bushel). Method 2: Find the change in the spread. October 7: March is Dec. October 17: March is Dec. Spread widened / narrowed by You expected the spread to widen. You gained / lost . (Also circle widened or narrowed and gained or lost, respectively). (On October 7, you bought the spread at On October 17, you sold the spread at You gained / lost /bu). (Fill in blanks and circle gained or lost.)