Using the Chart screen (Chart ), examine the intercommodity spread you formed in Exercise 5. Note than the contracts have to have the same expiration.
a. Use the Chart screen (Chart ) to create multigraphs for the index futures contracts. On the Chart Menu screen, select Standard G chart; once you have loaded your securities, go to "Edit" to put your graphs in separate panels.
b. Select a period in which you would have taken a bullish spread position and calculate the profit you would have realized from opening and closing at the futures prices at the beginning and ending dates for your selected period. Calculate the losses if you had taken a bearish intercommodity position.
c. Select a period in which you would have taken a bearish spread position and calculate the profit you would have realized from opening and closing at the futures prices at the beginning and ending dates for your selected period. Calculate the losses if you had taken a bullish position.
d. Using the annotation bar, apply the "\% Change" tool to calculate the percentage change for your select periods, and then click the "News" icon on the annotation bar to find relevant news events on or preceding the opening date.
Exercise 5.

Using the Bloomberg HRA Regression screen estimate the relation between two currencies. Load your selected currency (e.g., GBP for the British pound), and then go to the HRA screen for the regression. On the HRA screen, enter the other currency as the independent variable in the amber box (e.g., AUD \(<\) Curncy>) and select the time period and periodicity (daily).
a. Comment on the regression results and the relation (beta).
b. Explain how you would form bullish and bearish intercommodity spreads with the futures contracts on the underlying currencies.