Final answer:
The interest held by the optionee when an option is exercised but the sale has not closed is retained by the optionee. The optionee has control over the option and maintains interest until the final sale closes and ownership is transferred.
Step-by-step explanation:
When an option is exercised by a sales contract, but the sale has not closed, the interest held by the optionee is c. Retained by the optionee. In real estate and other forms of transactions, an option is a contract that gives the optionee the right, but not the obligation, to buy or sell an asset at a predetermined price, within a certain time period. The optionee has control over exercising the option, and until the transaction is fully executed and the sale closes, the optionee retains the interest.
During this time, the optionor (the seller) has effectively promised not to sell the asset to anyone else, giving the optionee an exclusive opportunity to complete the purchase. If the optionee chooses to exercise the option and both parties enter into a definitive sales agreement, the transaction moves towards closure. However, until the closing is finalized and ownership is legally transferred, the interest in the asset remains with the optionee.