Which of the Following Is True Regarding Martha's Liability to Henry

Multiple Choice

Which of the following is true regarding Martha's liability to Henry?

A) Because of the fraudulent alteration, Martha is not liable to Henry for any amounts under the promissory note.
B) Martha's obligation will be enforced only to the amount of $4,000 if payment is to be made to Henry; but if the note has been negotiated to another holder, Martha is liable for $4,500.
C) Taylor's obligation will be enforced only to the amount of $3,000 if payment is to be made to Henry; but in the event the note is negotiated to a holder in due course, Taylor is liable for $3,500.
D) Unless Martha has a written document from Henry to the effect that the agreement was for $4,000 only, Martha and Henry will be legally required to split the remainder with Martha being held responsible for $4,250.
E) Martha is liable for $4,000 regardless of whether or not Henry has negotiated the note to another party.