What is included in a lease option?

The correct answer involves the right to purchase the leased asset at a predetermined price, which is a fundamental characteristic of a lease option. A lease option provides the lessee with the opportunity to buy the asset they are leasing at a set price, usually established at the beginning of the lease term. This arrangement gives the lessee the flexibility to evaluate the asset's value and their interest in owning it before making a final decision, which can be beneficial if the asset appreciates in value over the lease period.

In the context of leasing, having an option to purchase allows for strategic financial planning and can also serve as an incentive for lessees to maintain the asset carefully, as they have a vested interest in its future value. This unique feature distinguishes a lease option from other forms of leasing agreements that do not include a purchase provision.

The other options do not accurately describe a standard lease option. For instance, the right for the lessee to sell the asset is not typically included in lease agreements, as the asset remains the property of the lessor. Similarly, the right to lease additional assets and the right to renew the lease without conditions are separate provisions that may exist in broader leasing arrangements but do not define a lease option specifically.