An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at an exchange rate of 1.4000 U.S. dollars per British pound.
a) If the investor fulfills the contract when the exchange rate is 1.3800 U.S. dollars per British pound, calculate the gain or loss in U.S. dollars.
b) Alternatively, if the exchange rate at fulfillment is 1.4200 U.S. dollars per British pound, calculate the gain or loss in U.S. dollars.