An option contract is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time.

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Quizplus · Accepted Answer

This is correct. An option contract is a separate contract from the actual underlying contract and is created when the offeree gives the offeror something of value in exchange for a promise not to revoke the offer for a stated period of time. This provides the offeree with the right, but not the obligation, to enter into the underlying contract within the specified timeframe.

An Option Contract Is Created When the Offeree Gives the Offeror