A is corrent because the instrument meets all of the requirements needed for a negotiable instrument. It is a two-party instrument containing an unconditional promise to pay a stated sum and consequently, is a negotiable promissory note. It is a bearer note because it is payable to the order of cash.
B is incorrect because a negotiable instrument is negotiable immediately after it has been issued.
C is incorrect because the negotiable aspect of an instrument is not affected by a provision on the face of the instrument that states security is given for the instrument.
D is incorrect because the instrument is a two-party instrument; thus, it is a note, not a draft (three-party instrument).
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