Explanation:

• Option (B) is correct because an option contract involves the buyer paying a premium to the seller at the initiation of the contract in exchange for the right to buy or sell the underlying asset at a predetermined price. This payment is known as the option premium.
• Swap (A) is incorrect because, like forwards and futures, no payment is required at the initiation of a swap contract. The value of a swap at inception is zero.
• Forward (C) is incorrect because, similar to swaps and futures, no payment is made at the initiation of a forward contract. The value of a forward contract at inception is also zero.