Question 20 (2 points) 1. Which one of the following statements contrasting options, forwards, and futures is correct? A) B) Both parties are obligated under a futures contract while only one party is obligated under an options contract. The buyer of a forward contract pays a premium when the contract is negotiated; the buyer of an options contract does not. Gains and losses on a forward contract are realized daily while gains and losses on a futures contract are realized only on the settlement date. C) D) Both forward and futures contracts are exercised only if the buyer so chooses