How Does a Futures Contract Differ from an Option Contract?
A futures contract is an obligation to buy or sell an asset at a predetermined price on a specified date. An option contract, conversely, gives the holder the right , but not the obligation, to buy (call) or sell (put) the asset at a specified price on or before a specified date.
Futures require both parties to fulfill the contract; options only require the seller to fulfill it if the buyer chooses.
