An option contract requires the offeror to:
A) keep an offer open for a specified period of time
B) offer more than one option
C) keep an offer under a certain price
D) limit an offer to a certain number of offerees
E) give at least a day's notice before withdrawing the offer

Question

Quizplus · Accepted Answer

An option contract is a type of contract in which one party (the offeror) gives the other party (the offeree) the right, but not the obligation, to buy or sell an asset at an agreed-upon price and date. The offeror is required to keep the offer open for a specified period of time, which is usually determined in the contract. Therefore, choice A is the correct answer.

An Option Contract Requires the Offeror To