An option is itself a contract to refrain from revoking an offer.

Question

Quizplus · Accepted Answer

An option is a contract in which the option holder (buyer) pays the option writer (seller) a premium in exchange for the right, but not the obligation, to buy or sell an underlying asset (such as a stock, commodity, or currency) at a predetermined price (strike price) within a specified time period. By purchasing an option, the option holder obtains the right to exercise the option or let it expire, but the option writer is obligated to fulfill the terms of the contract if and when the option holder chooses to exercise it. Therefore, an option itself is a contractual obligation to keep the offer open for a certain period of time, during which the option holder can decide whether to exercise it or not. This means that the option writer cannot revoke or withdraw the offer until the option expires or is exercised.

An Option Is Itself a Contract to Refrain from Revoking