On JAN 15, 2022 TTZOP longed the APRIL2023 and shorted the MARCH 2023 on the same underlying asset. The spread was - USD1.90/unit.

A. Based on the info above, what did TTZOP expect will happen to the spread? Explain.

B. TTZOP kept the spread open and on AUG 15, 2022 the above spread was at -USD2.50/unit. Did this present TTZOP with a profit or a loss on its spread position? Explain.

C. On AUG 16, 2022 the above spread changed to - USD1.70/unit. Given that on AUG 16, 2022 the APR 2023 futures settlement price increased by 35 cents (relative to the settlement price on AUG 15, 2022), calculate the change in the settlement price of the MAR 2023 delivery.