If the Parties to the Contract Do Not Set a Specific

question 22

Multiple Choice

If the parties to the contract do not set a specific time of performance for any obligation under the contract,the contract must be performed within which of the following?

• A) a reasonable time
• B) one year
• C) six months
• D) 30 days
• E) 60 days

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Definitions:

Market Price

The going rate for which a commodity or service can be traded or acquired in the market.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Exercise Price

The sum for which the bearer of an option has the privilege to acquire (with a call option) or dispose of (with a put option) the foundational asset.

Stock Price

The cost of purchasing a share of a company's stock, reflecting the market's valuation of the company at any given time.