Assume the Spot exchange rate between U$.$S$.$ dollar and euro is $$\frac{1\mathrm{.}08}{}1\mathrm{.}00.$ The $90$ day forward rate is $$\frac{1\mathrm{.}09}{}1\mathrm{.}00.$

The Initial Margin is $4\%$ and the Margin maintenance level is $30\%$ of Initial Margin. The cost of one option $($put or call$)$ is $$1,500.$

You are to receive $400,000$ in $90$ days. a$)$ Demonstrate how you would set up a hedge with Futures contract$($s$)?$ b$)$ The spot rate in $90$ days is $$\frac{1\mathrm{.}10}{}1\mathrm{.}00.$ You receive the $400,000$ and you exchange the euros into dollars. What is the net amount of dollars you receive and what is the dollar$/$euro exchange rate for the $400,000?$ c$)$ What would be the exchange rate for you to receive a Margin Call on your Futures Contract?