Disputed Ring

question 9

Multiple Choice

Disputed Ring.While working in the yard,Tina found a beat-up ring.Becca,an eighteen-year old neighbor,came over to visit and liked the ring.Tina said,"You can have this old thing if you would like." Becca replied,"I really like it - Maybe it's a real diamond!" Tina laughingly told her that there was a one in a billion chance of that and that Tina was more likely to win the lottery.A few months later Becca ran over to Tina's house and told Tina that the ring was actually a diamond worth thousands of dollars! Becca gave Tina the ring to examine.Tina put it in her pocket and told Becca that she would never have given it to her if she had realized its value and that possession was back where it had always belonged.Tina also told Becca that Becca failed to legally accept the gift because she did not know its true value and also because Tina did not sign any document turning over title.Becca sues.Which of the following is true regarding Tina's statement that she was entitled to the ring because she would not have given it to Becca if she had known the true value?

• A)Tina is entitled to ownership of the ring,but only if she can prove that she did not realize its true value.
• B)Tina is entitled to ownership of the ring,but only if she can prove that she did not realize its true value and that there was a difference of at least $1,000 between what she believed the value to be and its true value.
• C)Tina is entitled to ownership of the ring,but only if she can prove that she did not realize its true value and that there was a difference of at least $10,000 between what she believed the value to be and its true value.
• D)Tina is entitled to ownership of the ring,but only because neither she nor Becca realized its true value.
• E)Being ignorant of the value of the ring does not entitle Tina to ownership of it.

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Definitions:

Home Mortgages

Loans provided by financial institutions to individuals for the purchase of a home, secured by the property itself.

Coupon Rates

The interest rate paid by fixed-income securities, typically expressed as a percentage of the principal amount.

Expiration Time

The specific date and time when an option, futures contract, or similar financial instrument becomes void and ceases to trade.

Exercise Price

The price at which the holder of an option can buy or sell the underlying security.