Trader A enters into futures contracts to buy 1 million euros for 1.25 million dollars in four months. Trader B enters in a forward contract to do the same thing. The exchange rate (dollars per euro) declines sharply during the first three months and then increases during the fourth month to close at 1.2900.

Ignoring daily settlement, calculate the total gain or loss of each trader. When the impact of daily settlement is taken into account, which trader does better?