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• D) The option is rescinded.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.

---

Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given price point and time.

Enclosed Stadium

A sports venue that is fully covered and provides spectators and participants shelter from the weather.

Excise-Tax Revenues

Government income derived from taxes imposed on specific goods, services, or activities.

Tax Rate

The percentage of income or value of goods that is collected by the government as tax.