Vera Gives Willy a $459 Check as Payment for a Debt.Willy

question 36

Multiple Choice

Vera gives Willy a $459 check as payment for a debt.Willy crudely raises the amount of the check to $5,000 and transfers it to Xtreem Sportz store for a new bike.Xtreem deposits the check in its Yankee Bank account.Vera is liable for the payment of $5,000 to

• A)no one.
• B)Willy,Xtreem Sportz,and Yankee Bank.
• C)Willy only.
• D)Xtreem Sportz and Yankee Bank only.

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Definitions:

Exercise Price

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

Bullish Outlook

An expectation that a market, security, or economy will rise in value in the foreseeable future.

Out-of-the-money

A term used in options trading referring to options that would not make a profit if exercised immediately because their strike price is unfavorable compared to the current market price.

In-the-money

Describes an option with intrinsic value; for a call option, when the underlying asset's price is above the strike price; for a put option, when it's below.