Problem:
Leo is the sole proprietor of a store that sells rare books. He possesses a copy of For Whom the Bell Tolls, which is signed with the name of the author, Ernest Hemingway. He sells this autographed copy of For Whom the Bell Tolls on credit to Fyodor, a collector of rare books, for $5,000. On January 25, Fyodor provides Leo with a $5,000 negotiable promissory note in payment for the book. The note is payable in one year with 10% simple interest, for a total of $5,500. The book would be worth $5,000 if the Hemingway signature were authentic. However, unbeknownst to Fyodor, the signature is a forgery. Leo knows that it is a forgery. On February 16 of the same year, Fyodor sells the note to William for $5,000. William does not know that Hemingway's signature is a forgery. On March 3 of the same year, William gives the note free of charge to Charlotte. Charlotte learns from another source, before buying the book, that the Hemingway signature is a forgery. The note becomes due. How much, if anything, may Charlotte collect from Fyodor?