Benny,who Owns a Classic Car,lives in an Apartment with a Disabled

question 47

Essay

Benny,who owns a classic car,lives in an apartment with a disabled roommate.Benny is approached by Dick Albert,who advises Benny that if he does not sell his classic car for $2000 (a fraction of its value),the roommate "will have both his arms broken." Benny then signs the contract and Dick pays him the $2000.Benny was never threatened at any time during the transaction.What remedies can Benny pursue and what must he do in order to pursue those remedies? What is the likelihood of success?

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Definitions:

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specific quantity of an underlying asset at a set price within a specified time.

American Call-Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time period.

Dividend-Payout Policies

Strategies adopted by companies to decide the size and pattern of cash dividends to shareholders.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.