Gandalf has in his possession a negotiable instrument which was originally payable to the order of Bilbo Baggins. It was transferred to Frodo by a mere delivery by Samuel, who took it from Bilbo in good faith in satisfaction of an antecedent debt. The back of the instrument read as follows, "Pay to the order of Samuel in satisfaction of my prior purchase of a new video calculator, signed Bilbo." Which of the following is correct?

Group of answer choices

Bilbo's indorsement was a special indorsement; thus Samuel's signature was not required in order to negotiate it.

Gandalf has the right to assert Samuel's rights, including his standing as a holder in due course and also has the right to obtain Samuel's signature.

Frodo is a holder in due course.

Samuel's taking the instrument for an antecedent debt prevents him from qualifying as a holder in due course.