Options give the holder the right to exercise, whereas future contracts are "obligations" to buy or sell.

Question

Quizplus · Accepted Answer

Options grant the holder the right, but not the obligation, to buy or sell an asset at a specified price before a specified date, while futures contracts are agreements to buy or sell an asset at a future date at a price agreed upon at the time of the contract, thus obligating both parties to fulfill the contract terms.

Options Give the Holder the Right to Exercise, Whereas Future