Which of the Following Events Causes the Purchaser of an Option

question 72

Multiple Choice

Which of the following events causes the purchaser of an option to add its cost to the basis of the property to which the option relates?

• A)The option is exercised.
• B)The option is sold.
• C)The option lapses.
• D)The option is rescinded.
• E)None of these.

---

Definitions:

Punished

The act of administering a negative consequence to reduce the likelihood of a behavior recurring.

Social Learning

The theory that people can learn new behaviors by observing and imitating others.

Professors

Faculty members of a college or university with the responsibility of teaching and research.

Extensions

Additional parts or components added to enhance or expand the functionality or capability of an existing system.