A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future. In option contract the buyer of the call/put option has the right to buy/sell but do not have any obligation however the seller has to buy/sell if the buyer exercise the contract, where as in Future contracts both the buyer and seller has the rights and obligation to buy/sell the underlying asset.

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