You are an electricity trader at PJM. Today is March 1999. You observe the following forward curve for the year 2000. Price as per MWh:

Mar

Jan-00 31

Feb-00 30

Mar-00 25

Apr-00 23

May-00 29

Jun-00 39

Jul-00 76

Aug-00 72

Sep-00 36

Oct-00 25

You bought 10 September contracts and sold 10 July contracts. (Dont forget about contract multiplier.) Six months later, you observe September price to be $35 and July to be $93 per MWh. Calculate your total profit / loss on the positions.

a. $132,480 profit

b. -$117,760 loss

c. 117,760 profit

d. -$132,480 loss