Suppose that on October 24, 2002, you take a short position in an April 2003 live-cattle futures contract. You close out your position on January 21, 2003. The futures price (per pound) is 61.20 cents when you enter into the contract, 58.30 cents when you close out your position, and 58.80 cents at the end of December 2002. One contract is for the delivery of 40,000 pounds of cattle. What is your total profit? How is it taxed if you are

(a) a hedger and

(b) a speculator?