[Banking Problems] Celine Is a Loan Officer at ABC Bank

[Banking Problems] Celine is a loan officer at ABC Bank. Being somewhat dishonest, Celine tells Rohan, a customer of the bank, who is wealthy and rarely checks the status of outstanding loans and balances that she is collecting money for a local animal shelter. She asks him to sign a pledge that he will contribute $50 to the animal shelter. However, through covering pertinent terms of the document, Celine actually had Rohan sign a promissory note made out to her for $5,000, which she later endorsed to Miguel. After leaving the bank, Rohan proceeded to one of his businesses, a used car dealership. Taylor comes in to purchase a used car. He and Rohan agree that Taylor will purchase a car for $3,000. Zoe also comes in, and she and Rohan agree that she will purchase a used car for $4,000. Both Taylor and Zoe make out promissory notes payable to Rohan. At the end of the day, Rohan is looking through the notes and decides that Taylor's was mistakenly made out for $3,000 when it should have been $3,500. Rohan mistakenly, but honestly, believes that the deal was for $3,500. Therefore, he changes the note to reflect that Taylor owes $3,500. Rohan, on the other hand, simply does not like Zoe. He decides that $4,000 was not enough for the car. Accordingly, he changes the note to $4,500.
-Which of the following is the most likely result if Rohan refuses payment on the promissory note that was endorsed to Miguel claiming that he never signed it?

A) He will be liable because an official banking document was involved.
B) He will not be liable because a party is never liable on a negotiable instrument when it is signed without knowledge that it is, in fact, a negotiable instrument.
C) He will be liable unless he can establish that Miguel was not a holder in due course.
D) He can claim fraud in the factum, and whether he is liable or not will depend upon whether a court determines that he should have known what he was signing.
E) He can claim fraud in the inducement, and he will not be liable regardless of whether or not he knew what he was signing.