The obligation of the buyer represent a difference between an option contract and a forward contract.

Name: The obligation of the buyer represent a difference between an option contract and a forward contract.
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In an option contract, the buyer has the right but not the obligation to execute the contract, whereas in a forward contract, both parties have a definite obligation to fulfill the terms of the contract at the specified future date.

The Obligation of the Buyer Represent a Difference Between an Option