On December 1, 2008, Secure Company bought a 90-day forward contract to purchase 200,000 euros () at a forward rate of 1 = $1.35 when the spot rate was $1.33. Other exchange rates were as follows:

Spot Rate Forward Rate for March 1, 2009

December 31, 2008 $1.34 $1.36

March 1, 2009 $1.33

Prepare all journal entries related to Secure Company's foreign currency speculation from December 1, 2008, through March 1, 2009, assuming the fiscal year ends on December 31, 2008.

Did the company gain or lose on its purchase of the forward contract?