Question: Hello, could you please help me with the solution of this problem step by step? Suppose that in Sep.2015 a company takes a long position

Hello, could you please help me with the solution of this problem step by step?

Suppose that in Sep.2015 a company takes a long position in a contract on May 2016 crude oil futures.It closes out its position in March 2016.The futures price is $88.30 when it enteres into the contract,$90.50 when it closes out its position,$89.10 at the end of Dec.2015.The contract is for the delivery of 1000 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 Dec.31 year-end.

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