CFAI Reading 39, Q21 - credit risk on forwards actually, domestic, exchange

busterbluth

Is it just me or does this question not actually have appropriate info.
It says a forward to buy pounds is struck at 1.45 with a counterparty. Current exchange rate is 1.4 - who has credit risk.
I don’t think there is actually enough info to answer this question - we need to forward price (or both currencies’ domestic RFR to calc to forward price) to see who is in the money.

skycfa

counterparty bears the credit risk because who is long in this contract would say FU to counterparty and might not buy pounds at 1.45 as the spot price is 1.40.