An Option Contract Is Created When an Offeror Promises to Hold

question 21

True/False

An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

---

Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, despite negative health, social, and legal consequences.

Disease

A condition of the body or part of it in which functions are disturbed or arranged.

Genetics

The science of heredity and variation in living organisms.

Problem Drinking

A pattern of alcohol consumption that negatively impacts a person's health, social life, or responsibilities, but does not meet the criteria for alcohol dependence.