Answer Happy

Suppose that in September 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 (per barrel) is $88.30
when it enters into the contract, $90.50 when it closes out its
position, and $89.10 at the end of December 2015. One contract is
for the delivery of 1,000 barrels.
(a) What is the company’s total profit?
(b) When is it realized?
(c) How is it taxed if it is (i) a hedger and (ii) a speculator?
Assume that the company has a December 31 year-end.
2) A company has a $20 million portfolio with a beta of 1.2. It
would like to use futures contracts on a stock index to hedge its
risk. The index futures is currently standing at 1080, and each
contract is for delivery of $250 times the index.
(a) How many contracts and what position that the company should
enter to minimize risk?
(b)What should the company do if it wants to reduce the beta of
the portfolio to 0.6?
Could you prioritise q2 please but 1 would also be
appreciated