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- Suppose that on September 19, 2022, a firm shorts 22 May 2023 soybean futures contract. It closes out its position on April 15, 2023.

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- Suppose that on September 19, 2022, a firm shorts 22 May 2023 soybean futures contract. It closes out its position on April 15, 2023. The futures price (per bushel) is $14.72 when it enters the contract, $13.8 when it closes out the position and \$ 14.35 at the end of December 2022 . One contract is for the delivery of 5,000 bushels of soybean. What is the profit? How is it taxed if the company is (a) a hedger and (b) a speculator? Assume that the company has a December 31 year end

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