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You think bitcoin is a fad, and an overvalued one at that. You short thee bitcoin futures contracts, each of which has flve bitcoins as

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You think bitcoin is a fad, and an overvalued one at that. You short thee bitcoin futures contracts, each of which has flve bitcoins as the underfying asset, at a price of $6,422. A month later the same contract sells for $6,060. What is your dollar profit and your return on invested capital if you had to make an initial margin deposit of $41,329 ? What was the initial margin deposit relative to the value of the contracts you sold short? Does that percentage seem higher than the margin requirements of other assets? In general, what characteristic of bitcoin might iead the futures exchange to require a high initial margin? The profit on this transaction is 5 (Round to the nearest dollar.)

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