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

there is no real difference; option contracts have a negative reputation as a financial derivative, so

they are often referred to as forward contracts instead

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

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

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

today

forward contracts are regulated by the Federal Reserve; options contracts are regulated by the state

in which they originate