a. Discuss a key difference between valuation of commodities and fixed-income securities. (5 marks)

b. What are the five main types of market participants in the commodity futures markets? Explain their roles in the commodity futures markets. (5 marks)

c. The insurance theory posits that the futures price has to be lower than the current spot price. Discuss the rationale of the relationship between futures price and current spot price. (5 marks)