Suppose that on October $24,2016,$ a company sells one April $2017$ live$-$cattle futures contract. It closes out its position on January $21,2017.$ The futures price $($per pound$)$ is $151\mathrm{.}20$ cents when it enters into the contract, $148\mathrm{.}30$ cents when it closes out the position, and $148\mathrm{.}80$ cents at the end of December $2016.$ One contract is for the delivery of $40,000$ pounds of cattle. 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.