Futures option contracts does not create a transaction obligation for both contracting parties in the future.

Name: Futures option contracts does not create a transaction obligation for both contracting parties in the future.
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Question

Quizplus · Accepted Answer

Futures option contracts give the buyer the right, but not the obligation, to enter into a futures contract at a specified price, while the seller of the option assumes the obligation to fulfill the contract if the buyer decides to exercise the option.

Futures Option Contracts Does Not Create a Transaction Obligation for Both