Which of the Following Events Causes the Purchaser of an Option

question 14

Multiple Choice

Which of the following events causes the purchaser of an option to add the cost of the option 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• D) The option is rescinded.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 the above.

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Definitions:

Sensory Information

Data that is collected through the senses (sight, smell, touch, taste, hearing), which is then processed by the brain to help individuals understand and interact with their environment.

Cortex

The outer layer of the cerebrum in the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Forebrain

The anterior part of the brain, responsible for complex behaviors and functions, including thought, emotion, and sensory processing.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.