Identify the Correct Statement About Contracts

question 64

Multiple Choice

Identify the correct statement about contracts.

• A)Generally speaking,contracts are a form of public law.
• B)A contract represents mutual assent to a bargained-for exchange between parties.
• C)Universally,people disagree that breaching a contract carries ethical implications.
• D)When a legally enforceable contract is breached,the injured party cannot seek damages.
• E)All contracts are legally unenforceable promises.

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Definitions:

Strike Price

The Strike Price is the fixed price at which the owner of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Derivative Security

A financial instrument whose value is derived from the value of another asset, known as the underlying asset.

Financial Asset

A financial asset refers to any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity.

Transactions Exposure

The potential for a company's cash flows to be affected by changes in exchange rates due to transactions in foreign currencies.