Which of the Following Events Causes the Purchaser of an Option

question 47

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• D)The option is rescinded.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 these.

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Definitions:

Villi

Small, finger-like projections that extend into the lumen of the small intestine, increasing its surface area for nutrient absorption.

Small Intestine

A part of the gastrointestinal tract following the stomach and duodenum, where most of the end absorption of nutrients and minerals from food takes place.

Digestive System

The complex system of organs and glands responsible for the breakdown and absorption of food, extracting nutrients and eliminating waste.

Gallbladder

A small organ situated beneath the liver, responsible for storing and concentrating bile.