A US firm is receiving 185m JPY in 3 months' time. JPY futures are available on the Chicago Mercantile Exchange (CME) with a contract size of 12,500,000 JPY and currently trade at 0.009502 JPY/USD. The contract maintenance margin is 3600 USD with an initial margin of 110% of the maintenance margin.

(a) What will be the initial futures cash flow required (amount and currency )

(b) Assuming that the exposure and contract maturity dates are the same, what is the expected total (Physical + Hedge) net USD cash flow? ( You may ignore the time value of money and you Amy assume that the Unbiased Expectations Hypothesis Holds.