Question

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On date 0, an investor starts a short position in one futures contract on Bitcoin. One...

On date 0, an investor starts a short position in one futures contract on Bitcoin. One
contract is for delivery of 5 Bitcoins. Following are the future prices on subsequent
dates. What is the cumulative gain for the investor from date 0 through date 5?
Assume that the risk-free rate is zero.

Date Bitcoin futures price ($ per 1 Bitcoin)
0 11,410
1 11,784
2 12,005
3 11,568
4 11,235
5 10,912

Solutions

Expert Solution

What is the cumulative gain for the investor from date 0 through date 5?
=1*5*(11410-10912)
=2490.00

jeff jeffy answered 1 year ago
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