An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.

Name: An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree.
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Question

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This statement accurately describes the creation of an option contract, where the optionee (offeree) pays for the right to accept or reject the offer within a specified period of time.

An Option Contract Is Created When an Offeror Promises to Hold