Response to the following problem:
Annie Ryan has been an avid sharemarket investor for years. She manages her portfolio fairly aggressively and likes to short sell whenever the opportunity presents itself. Recently, she has become fascinated with market-index futures, especially the idea of being able to play the market as a whole. At the present time, Annie thinks the market is headed down, and she decides to short sell some ASX 200 Index futures. Assume she short sells three contracts at 4724 and has to make a margin deposit of $7000 for each contract.
How much profit will she make, and what will her return on invested capital be if the market does indeed drop so that the ASX 200 Index contracts are trading at 4600 by the time they expire?