# Cases in Financial Decision-MarkingAnswers 0Bids 74Other questions 10,Cases in Financial Decision-MarkingAnswers 0Bids 74Other questions 10

complete the Q3 and Q4 and i have presentation for this case?do the PowerPoint use key words, and Briefly summarize these two questions and attach a brief speech Case Study: Betting on Gold Using a Futures-Based Gold ETFSuggested Assignment Questions:1.How do gold futures contracts work?  What are the primary differences between futuresand forward contracts?2.Suppose Michelson took a long position (as a speculator) on the December 2012 goldfutures contract on 9/20/2012 and closed it on 10/19/2012.  Would Michelson have lost money or made a profit during that period, and would he have received a margincall?  Hint: Compute (mark to market) the daily gains/losses over the period.3.How are gold futures determined?  For example, can you make sense of the Dec-12 (GCZ12)futures price?  Hint:  Apply the spot-futures parity equation.4.Gold futures prices are typically higher for longer maturities:  Does that mean that goldprices are expected to rise?  Hint:  Use case Exhibit 6 data to support your argument.5.What drives futures gold futures prices outside of demand?6.Looking at case Exhibit 3, explain why the futures-based gold ETF (DGL) has a slippagein returns compared to the physical-based gold ETF (GLD) or gold spot prices?  Why is the slippage less than the futures-based oil ETF (USO) relative to crude oil spot pricesin Exhibit 2?7.Examine the period from 6/2/2008 to 10/19/2012.  Assume the DGL follows the rollSchedule in case Exhibit 12 for DBLCI-OY Gold.  The GC futures contracts are listed in case Exhibit 13.  How much did the roll yield contribute to the DGL returns?8.In which ETF would you recommend Michelson invest in order to get exposure to gold:The DGL or GLD?  Or would you recommend another option altogether?  Explain your reasoning with support point

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