In September 2021, Lynd Company buys March 2022 futures contracts for 1,000,000 pounds of frozen concentrated orange juice that it needs for its production in 2022. Lynd has a December 31 calendar year. During 2021, both the price of orange juice and Lynd's futures contracts decline in value. If the futures contracts decline by $52,000 during 2021 and remain at the same level until the contract expires in March 2022, Lynd would

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan