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.

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Definitions:

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room bookings).

Controlling Cost

The process of monitoring and managing expenses to stay within budget and improve efficiency and profitability.

Labor

A measure of the work done by human beings.

Transportation Method

A mathematical optimization technique used for finding the most cost-efficient plan for distributing products from several suppliers to several consumers.