The party that receives and holds an option.

• A. Optionee
• B. Optionor
• C. Broker
• D. Seller

Answer: (A)

In an option contract, the party who receives and holds the option is the optionee—the potential buyer who pays for the option and gains the exclusive right to purchase the property within a specified period and at a set price. The optionor is the seller or owner who grants that right. A broker may facilitate the arrangement, but the holder of the option is the optionee, not the broker or seller. For example, if a homeowner gives someone an option to buy the home within six months for a fixed price and the buyer pays for the option, that buyer is the optionee and holds the option. If the option is exercised, a separate purchase contract is created; if not, the option expires.