Adam Michaels thinks that the price of American Express (AXP) stock, currently at $129.57, will increase in the next 6 months, so he purchases a European call option on AXP stock expiring in six months. The call option has a strike price of $105 and is selling for $28.05. The interest rate is 3% APR, continuous compounding.

1. One month into the contract, is there any current credit risk? If yes, who bears it? How much is the current credit risk?

2. One month into the contract, is there any potential credit risk? If yes, who bears it? How much is the potential credit risk?