Rick Signed a Listing Agreement with Paul, a Real Estate

question 22

Multiple Choice

Rick signed a listing agreement with Paul, a real estate agent.The agreement stated that if Rick or anyone acting on his behalf should sell his property, Paul would still be entitled to his commission.This type of an agreement is a(n) :

• A)exclusive right to sell.
• B)open listing.
• C)exclusive agency.
• D)none of the above.
• E)two of the above.

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Definitions:

Marking To Market

This refers to the daily adjustment of accounts to reflect profits and losses in the value of securities.

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Derivative Security

A financial instrument whose value is based on the value of another asset.

Economic Exposure

Long-term financial risk arising from permanent changes in prices or other economic fundamentals.