Joy Steals a Check from Kyle,forges His Signature,and Transfers the Check

question 5

Essay

Joy steals a check from Kyle,forges his signature,and transfers the check to Loco Loans,Inc. ,for value.Unaware that the signature is not Kyle's,Loco Loans presents the check to Metro Bank,the drawee,which cashes the check.Kyle discovers the forgery and insists that Metro recredit his account.Can Metro refuse? If not,from whom can the bank recover?

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Definitions:

Stock Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified quantity of a stock at a set price within a certain time period.

Expiration Time

The specific date and time when an options or futures contract becomes void and the rights to exercise it cease.

Call Contract

An options contract that gives the holder the right to buy an underlying asset at a specified price within a certain period.

Write

In finance, this term often refers to the act of selling a derivative contract, such as an option, thus obligating the writer to fulfill the contract terms if exercised.