Andrea is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. Currently the spot price for the Japanese yen is Y129.87/U$ and the 6-month forward rate is Y128.53/U$. And Andrea believes that the yen will move to Y128.00/U$ in the next 6 months.

1. How much profit (in terms of U.S. dollars) could she make per forward contract (size = US$100,000) if the yen indeed moves to Y128/U$?
2. What would happen to Andrea's position in forward contracts if the yen moves to Y129.00/U$?
3. Determine Andrea's profit/loss per contract under the second spot rate scenario ( Y129.00/U$).