You own a cyber security firm and only take payment in bitcoin. Whenever you receive a payment you convert 40% into AUD for your everyday spending and keep the remaining in the digital currency. You are currently working on a project that will pay you 100 bitcoins at the end of the year. The current spot rate is $19000/Bitcoin. The current futures rate for one year into the future on the ASX is $21000/Bitcoin.

Answer rating: 100% (QA)

Since we are long on bitcoin in the spot market we will sell the bitcoin in future markets Since we ... View the full answer