What is the difference between a forward contract and an options contract?

a forward contract commits the parties involved to a transaction in the future at a price agreed upon

today; an option contract gives one party the option to buy or sell in the future at a price agreed

upon today

both commit the parties involved to a transaction in the future; only the forward contract sets the

future price in advance because option contracts set future quantities

forward contracts commits the parties involved to a transaction in the future at a price agreed upon

today; options contracts are similar but they commit the parties to honor whatever the market price

happens to be in the future

a forward contract gives one party the option to buy or sell in the future at a price agreed upon

today; an option contract commits the parties involved to a transaction in the future at a price

agreed upon today