On September 1^st you entered into a 3-month forward contract to buy 42,000 gallons of unleaded gasoline at $2.80/gallon. On December 1^st, the spot price of unleaded gasoline is $4.00 per gallon,

1. What cash settlement from long to short (or short to long) will fairly settle the contract without the involvement of actual gasoline?
2. What cash payment should go from long to short in exchange for delivery of the underlying commodity?