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?

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

You are to receive $400,000$ in $90$ days. a$)$ Demonstrate how you would set up an options hedge. b$)$ If 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 $400,000?$

If you sold one put at a strike price of $$\frac{1\mathrm{.}09}{}1\mathrm{.}00,$ at what exchange rate would you break even if the euro was put to you?

If annual interest rates in Europe are $4\%$ and $5\%$ in the USA how would you execute a Money Market hedge if you are to receive $400,000$ in three months?