In this task you are asked to form a trading strategy that speculates on the price difference between a pair of futures contracts of your choice. You are required to open your trading position in the week starting on Mon 3 Apr 2023 and keep your position open for at least 2 weeks. In any circumstance, you will need to close your position by Fri 28 Apr 2023 at the very latest. You are required to use futures contracts listed and traded on the ASX exchange.

Questions to answer:

1) Discuss the nature of the trading strategy used? (1marks)

2) Provide reasoning for your speculation of expected movements in the price/price difference of the pair of contracts? You should provide an analysis of relevant information/data to support your argument. (2marks)

3) Discuss the logical basis for your trading position? (2marks)

4) Using the settlement price of the relevant futures contracts on the ASX on the days that you trade, detail your financial position and evaluate the performance of your trading strategy. Provide reasoning for the profit/loss generated from your trading strategy. (5 marks)