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Read the case, An Investment Linked to Commodity Futures By: Jay O. Light, Kenneth A. Froot, Nancy Donohue, and write a 2-page report answering the

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Read the case, "An Investment Linked to Commodity Futures By: Jay O. Light, Kenneth A. Froot, Nancy Donohue," and write a 2-page report answering the following questions: A. Why do some commodity futures contracts trade at premiums to spot (contango) while others trade at discounts (backwardation)? B. Analyze the performance of the GSCI index historically. Do you expect similar performance in the future? C. Does the GSCI represent a "free lunch" going forward? D. What is the difference between investing in the futures contracts that underlie the GSCI index and investing in the Swedish Export Credit Corporation's GSCI-linked note? Was the Swedish Export Credit Corporation's note fairly priced at the time of issue? How much would you have paid for it? E. What business opportunity does Goldman Sachs see here? Why did they choose this particular index

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