10) Suppose that it is February. You are a speculator. You think that the spread between April gold futures and August gold futures will decrease over the next month. In particular, you forecast that if prices fall, then April gold futures will fall faster than August gold futures. You also forecast that if prices rise, then April gold futures will rise more slowly than August gold futures. Hence, you decide to open aspread trade:longone August gold futures andshortone April gold futures. Later in March, you close out (i.e., offset) both positions.

The underlying asset for one gold futures contract is 100 oz.

Here is the price data for February when you open both contracts:

• April gold futures: $1,215 per oz.
• August gold futures: $1,211 per oz.

Here is the price data in March when you close out both contracts:

• April gold futures: $1,184 per oz.
• August gold futures: $1,190 per oz.

What is yourtotalprofit or loss on this strategy (ignoring taxes and commissions)? Enter your answer to two decimal places. If a loss, then enter it as a negative number.

Caution: we always calculate spread per unit as price of long position minus price of short position.