A company that is expecting to receive EUR 500,000 in 60 days is considering entering into an FX futures contract to lock an exchange rate to USD for the transaction. The FX rate on the contract is EUR/USD 1.4125. Assume a contract size of EUR 125,000; initial margin of $5,400 per contract, and maintenance margin of $4,000 per contract. If the spot rate on the EUR changes from EUR/USD 1.4125 to EUR/USD 1.4235 what will be new value on the margin account? Using the information from the above problem, determine the impact on the margin account if the spot FX rate were to change from EUR/USD 1.4125 to EUR/USD 1.3995? Would this change result in a margin call? How much?

ANSWER IS $900, PLEASE EXPLAIN WHY STEP-BY-STEP