The basic statement is right.
Why can't the fifth option be truthful? *rimshot*
Because, you can't answer 'Yes' or 'No' to "Do you still beat your wife?"
I have a little experience in this but it is a few years old.
(A) If you wrote it I see no problem in duel license, but make sure they understand that it is still your code.
(B) Be careful, if you write something for them under contract they own it outright.
There is nothing so easy but that it becomes difficult when you do it reluctantly. -- Publius Terentius Afer (Terence)