Sonny Has a Negotiable Instrument Which He Gives to Cheryl

Sonny has a negotiable instrument which he gives to Cheryl as a birthday present.Sonny is a holder in due course on the instrument.As it turns out,Cheryl can only collect on the instrument if she has holder in due course status.If Cheryl sues to collect this instrument,what will be the result?

A) Cheryl is not a holder in due course, so she is subject to personal and real defenses of the issuer.
B) If Cheryl took the instrument in good faith and without knowledge of any claims against the instrument, she is a holder in due course even though Sonny gave her the instrument for her birthday.
C) Cheryl must pass the instrument on to someone else for money. That is the only way she can realize payment of the instrument.
D) Although Cheryl does not qualify as a holder in due course, she can claim the holder in due course status through Sonny and collect the instrument.