ContractsOption_contracts_and_right_of_first_refusalEASY
An option contract states that the option fee will be credited toward the purchase price if the optionee exercises. The option fee is $10,000 and the purchase price is $300,000. If exercised, how much additional money does the buyer owe at closing (ignoring other costs)?
Correct Answer
A) $290,000
With the $10,000 option fee credited to the purchase price, the buyer owes $300,000 - $10,000 = $290,000 at closing.
Answer Options
A
$290,000B
$310,000C
$300,000D
$10,000Why This Is the Correct Answer
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