The forward price for the GBP/EUR exchange rate is EUR 1.00 = GBP 0.90. You enter a long forward contract covering 500 GBP (that is, the contract allows you to buy GBP 500 at the forward price). You close out this forward position when the forward price is EUR 1.00 = GBP 0.70. What is profit or loss on your forward trading?

Select one:

EUR 158.74 gain

EUR 158.74 loss

EUR 100 gain

EUR 100 loss