$1\mathrm{.}1$ All products traded on the commodity derivative market of the JSE Limited can be physically settled at expiry in fulfilment of a futures contract. You purchase a gold futures contract with an initial margin requirement of $15\%$ and a futures price of R$115250.$

a$)$ What is the alternative to commodity futures if you do not want physical settlement?

b$)$ What would be the key differences if you wanted to purchase gold forwards rather than futures?

c$)$ If the futures price falls to R$108200,$ what will be the percentage loss on your position?