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Q3. Using the settlement prices on AUG 15 20 in Q2 above, explain how to open a MAR21 JUL21 calendar spread with 50 CBT futures

Q3. Using the settlement prices on AUG 15 20 in Q2 above, explain how to open a MAR21 JUL21 calendar spread with 50 CBT futures when a speculator expects this spread to widen over time. Use the same format that I used in the nemrical example on the last 4 slides of CH. 2 to describe Calendar spreads.

AUG 15 20

327.75

330.65

342.10

348.00

351.50

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