Suppose that on October 24, 2010, you take a short position in an April 2011 live cattle futures contract. You close out your position on January 21, 2011. The futures price is 91.20 cents (per lb.) when you enter into the contract, 88.30 cents when you close out your position, and 88.80 cents at the end of December 2010. One contract is for 40,000 pounds of cattle. What is your total profit? How is it taxed if you are (a) a hedger and (b) a speculator? Assume that you have a December 31 year end.