Characteristic of bitcoin

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Problem: You think bitcoin is a? fad, and an overvalued one at that. You short thee bitcoin futures? contracts, each of which has five bitcoins as the underlying? asset, at a price of ?$6,403. A month later the same contract sells for ?$6,053. What is your dollar profit and your return on invested capital if you had to make an initial margin deposit of ?$41,389?? 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 lead the futures exchange to require a high initial? margin? Please deliver the complete solution of this question.

Reference no: EM132418000

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