Comment on the current credit risk assumed for each of the following positions. Treat them separately, that is, not combined with any other instruments.
a. You are short an out-of-the-money interest rate call option.
b. You entered into a pay-fixed, receive-floating interest rate swap a year ago. Since that time, interest rates have increased.
c. You are long an in-the-money currency put option.
d. You are long a forward contract. During the life of the contract, the price of the underlying asset has decreased below the contract price?