Barrier option A ‘knock-out barrier option’ is a call or put option which may only be exercised at maturity if the price of the underlying never hits a pre-agreed barrier….
Should Carol be allowed to bring this action? Why or why not?
Assume that you live in a state where heart balm actions can be brought. Dan asks Carol to marry him. Carol says yes. The date is set for the wedding. Two weeks before the wedding, Carol learns that Dan has just married Linda. At the time Dan was engaged to Carol, Carol was already married to Bill, but Dan did not know this. Carol was in the process of divorcing Bill and hoped the divorce would be finalized before her marriage to Dan. Carol wanted to wait until the divorce was final before telling Dan about the prior marriage and divorce. Dan did not learn about any of this until after his marriage to Linda. When Carol’s divorce to Bill became final, she sued Dan. The cause of action stated in Carol’s complaint against Dan is breach of promise to marry. Should Carol be allowed to bring this action? Why or why not? (See General Instructions for the LegalAnalysis Assignment in Appendix A.)