Wright Company Contracted with the City of St

question 10

Multiple Choice

Wright Company contracted with the city of St.Louis to train and employ disadvantaged youths.If Wright fails to fulfill the contract and is sued by one of the disadvantaged youths,the youth would

• A)win, as he is an intended beneficiary.
• B)win, as he is a donor beneficiary.
• C)lose, as he is a creditor beneficiary.
• D)lose, as he is an incidental beneficiary.

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Definitions:

Market Price

The market value at which a service or asset is currently traded.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a set price within a specified time.

Strike Price

The rate at which an option's owner has the right to purchase (for a call option) or offload (for a put option) the underlying asset or commodity.

Market Price

The current price at which an asset or service can be bought or sold.