a) Consider an asset priced at $50. A new forward contract on this asset expires in six months. The risk-free rate, with discrete compounding, is 4 percent. a. Two months after the contract is initiated, the price of the asset has increased to $50.85. What is the amount of credit risk at this time? Which party bears this risk, the long or the short? b. Suppose instead that two months after the contract is initiated, the price of the asset has decreased to $49.55. How much is the credit risk then? Which party bears this risk, the long or the short? a) Consider an asset priced at $50. A new forward contract on this asset expires in six months. The risk-free rate, with discrete compounding, is 4 percent. a. Two months after the contract is initiated, the price of the asset has increased to $50.85. What is the amount of credit risk at this time? Which party bears this risk, the long or the short? b. Suppose instead that two months after the contract is initiated, the price of the asset has decreased to $49.55. How much is the credit risk then? Which party bears this risk, the long or the short