reasons. The producer has until the end of the last extension period to exercise the option. Producer's role during the option period During the option period, the producers often: Get the screenplay written (if the option was on a book or other work, and not a screenplay); Obtain informal agreements with the director, the principal actors, the film crew, and the financiers; Take it to a movie studio or other potential financier and potentially help with distribution (pre-sales); Finalize the screenplay to the agreement of all stakeholders— the exclusivity of the option allows this step without risk of a rival attempt to produce the same property This process can last for a prolonged period of time known as development hell. If all planning falls into place, actual agreements are signed, financing is secured, and the option fee is paid, then the producer can start pre-production. Options in Hollywood Options are not expensive by the standards of Hollywood movies. For True Romance, Quentin Tarantino received US$50,000 to option his script. Many writers are happy to receive a few thousand dollars. Option contracts typically do specify the eventual cost of the screenplay, if the producer does end up exercising the option. Since optioning a screenplay is far cheaper than buying it, options are very popular in Hollywood for speculative projects. See also Box office futures Option (law) Real option Film budgeting Film finance Hollywood accounting References Film production Real options