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• D) The option is rescinded.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:

Working Memory

A cognitive system that holds information temporarily available for processing tasks such as reasoning, learning, and comprehension.

Long-Term Memory

The capacity of the mind to store and retrieve information over extended periods, ranging from hours to decades.

Short-Term Memory

A limited-capacity store that can maintain unrehearsed information for about 20 to 30 seconds.

Sensory Memory

The shortest-term element of memory, which allows individuals to retain impressions of sensory information after the original stimuli have ended.