Generally,which of the Following Is FALSE Regarding an Option Contract

question 33

Multiple Choice

Generally,which of the following is FALSE regarding an option contract?

• A)An option contract allows the developer to perform a preliminary market study and feasibility analysis
• B)If the developer decides to purchase a property,the price of an option is applied towards the price of the property
• C)If the developer decides not to purchase the property,the landowner will refund any money paid for the option
• D)An option contract provides the developer with the assurance that a property will not be sold over the course of the option period

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Definitions:

Discounted Value

The present value of future cash flows discounted back to the present using a specific rate.

Future Earnings

Future earnings denote the projected income a company or individual is expected to generate over a specified future period.

Mutual Fund Products

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Under-Served Niche

A segment of the market that has not been adequately addressed or serviced by existing providers, often presenting opportunities for new entrants.