Question

Daphne, a victim of identity theft, can’t currently qualify for a loan but wants to buy her friend’s condo for $90,000. She could give him $1,000 now, if he promised not to sell to anyone else in the next six months, giving her the opportunity to purchase the property within that time period. This is

Answer 1

Answer:

an option agreement.

Explanation:

The option agreement in the arena of financial derivatives is a contract between two parties that gives one party the right, but not the obligation, to buy an asset from the other party or to sell an asset to the other.

It outlines the agreed-upon price and the transaction's future date.