Question: I need steps 3. A hedger takes a long position in a futures contract on a commodity on November 1, 2020 to hedge an exposure

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I need steps 3. A hedger takes a long position in a

3. A hedger takes a long position in a futures contract on a commodity on November 1, 2020 to hedge an exposure on March 1, 2021. The initial futures price is $60. On December 31, 2020 the futures price is $61. On March 1, 2021 it is $64. The contract is closed out on March 1, 2021. Each contract is on 1,000 units of the commodity. What gain is recognized in the accounting year January 1 to December 31, 2021? How does the answer change if investor is a speculator? Answer: $4,000; $3,000

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