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Suppose that three days after taking out the futures contracts the price of September canola increases from $610 to $640 a tonne.What additional payments will be made by or to the farmer and the oil processor? What will be their remaining obligations at the end of this third day?
Increases Equity
An action or event that raises the value of an owner's shares in a company or property.
Decreases Risk
Involves actions or strategies aimed at reducing the potential for loss or harm in various contexts, such as financial investments, business operations, or personal decisions.
Reduces Liquidity
Refers to any action or situation that decreases the ease with which assets can be converted into cash without significant loss in value.
Divestiture
Sale of assets by a company.
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