Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A) In a spot contract the buyer and seller enter into a contract at time 0, the contract is marked-to-market, the seller agrees on a price at time 0 and the bonds is delivered by the seller to the buyer 'at that time'.
• B) In a spot contract the buyer and seller agree on a price at time 0 and the bonds is delivered by the seller at a future point in time, e.g. after three months.
• C) In a spot contract the buyer and on a daily basis, and the buyer pays the spot price quoted at expiry.
• D) None of the listed options are correct.

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Definitions:

Consideration Requirement

A legal principle that an agreement must involve a bargain or exchange of value between the parties to be enforceable.

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims that could be raised by prior parties.

Shelter Principle

A legal concept that allows a person who receives goods in good faith without knowledge of a defect in the title to sell them with a clear title.

Holder

A party in possession of a negotiable instrument.