Oil is selling for $50/barrel currently. An independent producer decides that it is concerned about a price war and decides to enter into a futures contract to sell 1000 barrels at $48. The buyer of the contract is a speculator that is required to put up 10% margin upon entering the contract. When the contract delivery date arrives, oil is selling at $35/barrel.

A. What is the additional revenue earned by the oil producer by entering into the futures contract?

B. Ignore likely interim margin calls, what is the speculator's loss in dollars as % of initial investment (margin amount)?