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by On 2 January 2020, the following prices for Crude Palm Oil Futures (FCFO) are available at Bursa Malaysia Derivative Berhad: Contract High LOW Settlement

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by On 2" January 2020, the following prices for Crude Palm Oil Futures (FCFO) are available at Bursa Malaysia Derivative Berhad: Contract High LOW Settlement Volume Open RM Interest Jan 2020 2200 2230 2241 -30 18228 40418 Feb 2020 2234 2201 2205 -33 5832 28901 Mar 2020 2211 2170 2179 -36 2594 5854 Apr 2020 2194 2211 2162 -35 1726 12310 May 2020 2176 2140 2142 831 22152 June 2020 2178 2141 2143 979 11792 July 2020 2182 2142 2146 37 809 3617 As a sprosdor, you are interested to trade a spread between the months of Feb and May. Suggest a strategy that is appropriate I you predict that the spread between the two months would be narrowing. Show your profit'loss if Feb and May FCP3 prices close at RM2 135 and RM2.1 11 respectively. (Assume B contracts)

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