An investor decides to speculate in Soybeans and is faced with the following current quotes and expected prices: March Soybeans quoted at $11.00...

• An investor decides to speculate in Soybeans and is faced with the following current quotes and expected prices:

March Soybeans quoted at $11.00        E(St) = 13.50 May Soybeans quoted at $11.70           E(Ft) = 14.00

Someone positioning a spread expects the price difference to narrow and therefore will buy which contract and sell which contract? What is the gain or loss? (hint treat each transaction individually as far as gain and loss then net the two).