A managing underwriter receives a right of first refusal to participate in future offerings from an issuer. How must this be treated under FINRA Rule 5110?

1. AIt is not considered compensation if not exercised.
2. BIt is excluded from all disclosures if the value is less than $10,000.
3. CIt must be disclosed and valued as underwriting compensation.✓ Correct answer
4. DIt only needs to be noted in the underwriter's internal records.

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