Suppose that, on October 24, 2012, a company sells one April 2013 live cattle futures contract. It closes out its position on January 21, 2013. The futures price (per pound) is 91.20 cents when it enters into the contract, 88.30 cents when it closes out its position, and 88.80 cents at the end of December 2012. One contract is for the delivery of 40,000 pounds of cattle. What is the total profit? How is it taxed if the company is

(a) a hedger and

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