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What is an option contract quizlet


An option contract, or option, an offer to purchase a specific piece of real estate, but without the obligation to buy it. In an option contract. the potential buyer (optionee) is required to pay an option fee to the seller (optionor).

What is option contract?

An options contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date. Call options can be purchased as a leveraged bet on the appreciation of an asset, while put options are purchased to profit from price declines.

What type of contract is an option contract quizlet?

An option is a contract in which the seller gives the buyer the right to buy or lease the property at a fixed price and fixed term. An option contract is a bilateral contract.

What are options quizlet?

An option is defined as a right, but not an obligation, to buy or sell an underlying asset at a fixed price during a specified period of time.

What is an option money quizlet?

✏️ Option Money: Fees paid at the closing of a real estate transaction.




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