Final answer:
To exercise an option, a buyer should send a written notice to the seller in the form of a professional business letter to ensure clarity and provide a formal record of the communication.
Step-by-step explanation:
To communicate an intention to exercise an option, the most formal and documented method for a buyer is to send a written notice to the seller. This written notice should be in the form of a business letter, which is a professional way to conduct formal correspondence. Using this method ensures clarity and serves as a record of intent that can be referred back to if needed. While it is possible for a buyer to communicate with the seller through other informal means, such as a phone call or an email, when dealing with formal financial transactions, documentation is crucial. The business letter can include details such as the specific option being exercised, the date of exercise, and any other pertinent terms or instructions.
In today's digital world, this letter could be sent via email, provided it includes all the necessary formal elements of a business letter and is appropriately formatted for professional communication. Remember, for important matters that require an unequivocal record, written communication is often the best course of action.