Options are more flexible than forward contracts.

Name: Options are more flexible than forward contracts.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

Options offer the buyer the right, but not the obligation, to buy or sell an underlying asset at a certain price and time. This flexibility allows for more tailored hedging strategies compared to forward contracts, which require both parties to fulfill the obligation at a specific date and price.

Options Are More Flexible Than Forward Contracts