Tony Contracted to Buy Wheat from Brown, a Farmer

question 47

Multiple Choice

Tony contracted to buy wheat from Brown, a farmer. It was contracted that Tony would pay Brown three days after the delivery of the wheat. Brown's delivery would be a(n) _____ of Tony's duty to pay.

• A) implied concurrent condition
• B) condition subsequent
• C) constructive concurrent condition
• D) constructive condition precedent

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Definitions:

Expiration Date

The date on which a derivative contract (like options or futures) becomes invalid and the right to exercise it ceases.

Indefinite Future

A time period in the future that has no defined ending or timeframe, often used in discussions about long-term possibilities or uncertainties.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified period.

Writer

In the context of options, the writer is the seller who grants the right to the buyer in exchange for a premium, assuming the risk that the asset may have to be delivered under the contract terms.