Exhibit 21 -Refer to Exhibit 21

question 13

Multiple Choice

Exhibit 21.1
Use the Information Below for the Following Problem(S)
In late January 2004, The Union Cosmos Company is considering the sale of $100 million in 10-year debentures that will probably be rated AAA like the firm's other bond issues. The firm is anxious to proceed at today's rate of 10.5 percent. As treasurer, you know that it will take until sometime in April to get the issue registered and sold. Therefore, you suggest that the firm hedge the pending issue using Treasury bond futures contracts each representing $100,000.
$$\begin{array} { l c c } & \text { Casel } & \text { Case2 } \\ \text { Current Value - January 2004 } & & \\\text { Bond Rate } & 10.5 \% & 10.5 \% \\\text { June 2004 Treasury Bonds } & 78.875 & 78.875 \\\text { Estimated Values - Aprì 2004 } & & \\\quad \text { Bond Rate } & 11.0 \% & 10.0 \% \\\text { June 2004 Trea5ury Bonds } & 75.93 & 81.84\end{array}$$
-Refer to Exhibit 21.1.What is the dollar gain or loss assuming that future conditions described in Case 2 actually occur? (Ignore commissions and margin costs,and assume a naive hedge ratio.)

• A) $2,965,000.00 gain
• B) $45,500.00 gain
• C) $2,965,000.00 loss
• D) $45,500.00 loss
• E) None of the above

Comprehend the psychological mechanisms behind compliance with immoral or unethical orders.

Recognize the role of psychological distance and situational factors in obedience.

Identify the characteristics and consequences of authoritarian personalities.

Understand the principles of social influence, including reciprocity, social facilitation, and social loafing.

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Definitions:

Battle Of The Forms

A legal conflict that arises when two parties conducting business each provide their own sales contracts, which contain conflicting terms.

Fine Print

Small, often difficult to read text in contracts or agreements that can contain important legal obligations or information.

Merchant

An individual or business entity engaged in the sale and purchase of goods for profit.

Consideration

A legal concept that refers to something of value exchanged between parties to form a binding contract.