Which statement correctly describes a key difference between futures and options?

• A. Futures grant the holder the right but not the obligation to transact at a set price.
• B. Futures only settle in cash, while options settle in physical delivery.
• C. Futures obligate both parties to transact at a set price at expiration, while options give the holder the right but not the obligation to buy or sell at a strike price.
• D. Futures and options have identical payoff structures.

Answer: (C)