Which option contract characteristic describes a buyer's right?

• A. It gives the buyer the right to buy within a specified time
• B. It obligates the buyer to purchase immediately
• C. It transfers title at signing
• D. It requires a down payment upfront

Answer: (A)

An option contract is built around giving the buyer a specific, time-limited right to purchase. The key point is that the buyer can choose to exercise that right within the agreed period and at the agreed terms, but is not obligated to do so. The seller, on the other hand, is bound to sell if the buyer exercises the option. That’s why the statement that describes the buyer’s right is the best fit: it captures the core idea that the buyer has a defined window to buy, without being forced to purchase immediately or to transfer title at signing, and without requiring a down payment as an inherent feature of the option itself.