On July 1, 2011, a company enters into a forward contract to buy 10 million Japanese yen on January 1, 2012. On September 1, 2011, it enters into a forward contract to sell 10 million Japanese yen on January 1, 2012. Describe the payoff from this strategy.

Suppose that USD/sterling spot and forward exchange rates are as follows:

Spot 1.4580 90-day forward 1.4556 180-day forward 1.4518