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A dealer sold a call option on a stock for $20 to an investor one month ago. The option is currently worth $12, as quoted

A dealer sold a call option on a stock for $20 to an investor one month ago. The option is currently worth $12, as quoted in the market. What is the amount at risk of a credit loss now?

Group of answer choices

$8

$0

$12

$32

Consider a five-month forward contract established at rate of $100. The contract is two months into its life. The spot price is $103, the annual risk-free rate is 5 percent, and the underlying makes no cash payments. At month 2, what is the amount at risk of a credit loss? What is the short position's potential credit risk at month 2?

Group of answer choices

$5.88; 5.88

$4.21; 4.21

$5.88; 0

$4.21; 0

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