Assume that interest rate parity exists. The spot rate of the Argentine peso is $.40. The one-year interest rate in the U.S. is 7%; the comparable rate is 12% in Argentina. Assume the futures price is equal to the forward rate. An investor purchased futures contracts on Argentine pesos, representing a total of 1,000,000 pesos.

Determine the total dollar amount of profit or loss from this futures contract based on the expectation that the Argentine peso will be worth $.42 in one year.