Laura Is in Possession of a Check Which Contains the Following

question 46

Multiple Choice

Laura is in possession of a check which contains the following indorsement, "Sam Smith, without recourse, for collection only." The indorsement would be classified as:

• A)blank, qualified, and restrictive.
• B)blank, unqualified, and unrestrictive.
• C)special, unqualified, and restrictive.
• D)special, qualified, and unrestrictive.

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Definitions:

U.S. Treasury

Refers to the federal government department responsible for managing government revenue and also to the securities (like bonds) it issues, considered low-risk investments.

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 specified price within a specified time.

Underlying Asset

The financial asset upon which derivatives such as options and futures are based, determining their value.

Strike Price

The set price at which the holder of an options contract can buy (in a call option) or sell (in a put option) the underlying security or commodity.