C is corrent because the instrument is a negotiable draft since it meets all the requirements of a negotiable instrument and is a three-party instrument that contains an order on its face. Stein is the drawer, Security Trust is the drawee, and Alex & Company is the payee.
A is incorrect because before an instrument can qualify as a check it must be payable on demand. This instrument is not payable on demand, but payable 10 days after presentment.
B is incorrect because this instrument is not a trade acceptance since it is not drawn on and accepted by the buyer.
D is incorrect because the instrument is a negotiable draft since it meets all the requirements of a negotiable instrument and is a three-party instrument that contains an order on its face.
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