A call option contract: Multiple Choice A obligates both the buyer and the seller. B obligates...

A call option contract:

Multiple Choice

A obligates both the buyer and the seller.

B obligates the buyer but not the seller.

C grants rights to the buyer and obligates the seller.

D grants rights to the seller and obligates the buyer.

E grants rights to both the buyer and the seller but does not obligate either party.

Solutions

Expert Solution

Option buyer has the option to exercise it or not at his will and the seller is bound to fulfill the order. The buyer pays an upfront premium for the right to do so. Therefore option C is correct. Option D becomes incorrect automatically

Only buyer has the right so option E is incorrect and Only seller is obliged so options A and B are also incorrect.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

a) Buyer A has entered into a contract for the sale of goods with Seller B....

a) Buyer A has entered into a contract for the sale of goods with Seller B. Seller B has delivered nonconforming goods but has promised to cure the defects. After three months of waiting, Seller B has not cured the defect. What remedy does Buyer A have? b) Buyer A has entered into a contract for the sale of goods with Seller B. Buyer A has breached the contract while the goods are in transit. What remedy does Seller B...

a) Buyer A has entered into a contract for the sale of goods with Seller B....

a) Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Seller B informs A that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. Seller C will sell Buyer A the goods for $4,000 plus a transportation cost of...

Buyer A has entered into a contract for the sale of goods with Seller B.

Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On February 1, 2010, Seller B informs A that it will not be able to perform the contract. What has occurred and what remedies are available to A in this case?

A German seller and a U.S. buyer form a contract. The buyer breaches. The seller sues...

A German seller and a U.S. buyer form a contract. The buyer breaches. The seller sues in a German court and wins damages, but the buyer’s assets are in the United States. If a U.S. court enforces the judgment, it will be because of Question 33 options: the doctrine of sovereign immunity. the act of state doctrine. the principle of comity. None of the above.

Buyer and Seller entered into a contract governed by the CISG for Seller to deliver a...

Buyer and Seller entered into a contract governed by the CISG for Seller to deliver a sophisticated computer to Buyer by January 1. Seller was late in delivering themachine, so Buyer wired Seller on January 2: “Anxious to take delivery of the computer. Hope that it arrives by February1.”Seller delivers the computer on February 5, but Buyer refused to accept it and declares that the contract is avoided because Seller failed to hand over the computer before the February 1...

Expatiate on the duties of the seller to the buyer in a contract for sale of...

Expatiate on the duties of the seller to the buyer in a contract for sale of goods.

3- An option to purchase binds which of the following parties? a) Buyer only b) Seller...

3- An option to purchase binds which of the following parties? a) Buyer only b) Seller only c) Neither buyer nor seller d) Both buyer and seller please explain the answer you did not explain that earlier

Seller and buyer enter into a contract for buyer to purchase 1,000 pot holders for $1,000....

Seller and buyer enter into a contract for buyer to purchase 1,000 pot holders for $1,000. Assume for purposes of this question the contract is in writing and otherwise meets all requirements of the Statute of Frauds. Buyer breaches the contract and seller resells to a local company for $900. Discuss the remedies that are available to the seller

Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer.

Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer. Title of these goods passes to the buyer when the (a) seller hands over the goods to the carrier (b) buyer takes the actual delivery of the goods (c) buyer receives a receipt for the goods (d) all of the above

Consider a buyer and seller who enter into a contract where the seller produces a good...

Consider a buyer and seller who enter into a contract where the seller produces a good and delivers it to the buyer for payment. At the time of making the contract, the seller is uncertain as to the actual cost of the project, and the situation is described by the following: Cost = 30 with probability 60% Cost = 70 with probability 20% Cost = 150 with probability 20% Before production occurs, the seller does learn the cost. The value...

Subjects