Assignees Should Promptly Notify the Promisor of an Assignment Because

question 21

Multiple Choice

Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:

• A) is still liable under the contract.
• B) has no further liability under the contract.
• C) creates a novation.
• D) cannot be sued by the assignee for nonperformance.

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Definitions:

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Stock Beta

A measure of a stock's volatility in relation to the overall market; reflects the risk associated with a specific stock.

Time to Maturity

The duration left until the final payment date of a financial instrument, critical for assessing its risk and return.

Exercise Value

The value of an option if it were exercised today; for call options, it is the current price of the underlying asset minus the strike price.