Suppose that in September 2012 a company takes a long position in a contract on May 2013 crude oil futures. It closes out its position in March 2013. The futures price (per barrel) is \(\$ 68.30\) when it enters into the contract, \(\$ 70.50\) when it closes out its position, and \(\$ 69.10\) at the end of December 2012. One contract is for the delivery of 1,000 barrels. What is the company's total profit? When is it realized? How is it taxed if it is

(a) a hedger and

(b) a speculator? Assume that the company has a December 31 year-end.