Mandy is an Indiana licensee who submitted an offer to purchase from a buyer client to the listing agent. The earnest money was a Rolex watch. Which of the following is true regarding this situation?
1) The offer is valid and the Rolex watch can be considered as earnest money.
2) The offer is invalid as the earnest money should be in the form of cash or check.
3) The offer is valid but the Rolex watch cannot be considered as earnest money.
4) The offer is invalid as the buyer client cannot submit an offer to the listing agent.