Identify the fundamental distinction between a futures contract and an option contract, and briefly explain the difference

Question:

Identify the fundamental distinction between a futures contract and an option contract, and briefly explain the difference in the manner that futures and options modify risk.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...