One key difference between options contracts and futures contracts is:
A) in a futures contract, one part has more rights than the other.
B) with an options contract both parties have equal rights.
C) in an options contract, the rights belong to one party.
D) in a futures contract all rights are held by just one party.

Question

Quizplus · Accepted Answer

In an options contract, the rights belong to the holder (buyer) of the option, who has the right but not the obligation to buy or sell the underlying asset at a predetermined price. The seller (writer) of the option has the obligation to fulfill the contract if the holder decides to exercise the option. Futures contracts, on the other hand, obligate both parties to buy or sell the asset at a predetermined price and date, making the rights and obligations symmetrical.

One Key Difference Between Options Contracts and Futures Contracts Is