According to the Group of 30 Report, option contracts:

According to the Group of 30 Report, option contracts:
A . Always generate credit risk to both counterparties
B . Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation
C . Create no credit risk, since the buyer need not exercise the option
D . Usually create credit risk only for the seller (to default by the buyer)

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Answer: B