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Loan Clauses - Agreed price of £500k?


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I've decided to start a career with Blackpool and I was starting to sort my squad out before I came across something that I've always been a bit unsure of. Basically, Luke Varney is currently on loan and under loan clauses, it says that there is an agreed price of £500k. I've seen it in the game before but I've never been 100% sure what it means.

Does it mean:

A. A transfer has already been agreed between both clubs and Luke Varney will join Blackpool permanently at the end of the season

B. I will have an option of either accepting or declining to sign Luke Varney permanently for £500k at the end of the season

C. Blackpool have paid Derby a fee of £500k to loan Luke Varney for the season

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It means 'B'.

On the subject, Hatem Ben Arfa has a 5 mil fixed price in Newcastle loan, but in real life its an auto transfer after 25 matches. A little issue, but with a player as good as Ben Arfa, it really puts me off playing as Newcastle; their budget is not enough to afford paying the clause.

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