Which statement most accurately distinguishes a forward commitment from a contingent claim?
A forward commitment gives one party the right but not the obligation to transact, while a contingent claim obligates both parties at expiration.
A forward commitment obligates both counterparties to transact in the future, while a contingent claim gives the buyer a right and the seller an obligation if exercised.
A forward commitment always requires an upfront premium, while a contingent claim typically has zero value at initiation.
A forward commitment has an asymmetric payoff, while a contingent claim has a symmetric payoff.