A Call Option on UK Pounds Has a Strike Price

question 25

Multiple Choice

A call option on UK pounds has a strike price of $2.05/£ and a cost of $0.02. What is the break-even price for the option?

• A) $2.03/£
• B) $2.07/£
• C) $2.05/£
• D) The answer depends upon if this is a long or a short call option.

Understand the concept of a holder in due course and the requirements for becoming one.

Identify and differentiate between personal (contractual) defenses and real defenses in the context of negotiable instruments.

Recognize the effects of unauthorized signatures and forgeries on the negotiation and enforceability of negotiable instruments.

Understand the roles and effects of indorsements, including special, blank, and restrictive indorsements.

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Definitions:

Shays's Rebellion

In 1786-1787, American agriculturalists initiated a violent rebellion opposing state and local authorities' enforcement of taxes and debt rulings.

Central Government

The government entity responsible for the administration and implementation of policies over an entire nation as opposed to local governing bodies.