Which of the following risks will be created as a result of the forward exchange transaction?

An asset manager for a large mutual fund is considering forward exchange positions traded in a clearinghouse system and needs to mitigate the risks created as a result of this operation.

Which of the following risks will be created as a result of the forward exchange transaction?
A . Exchange rate risk
B . Exchange rate and interest rate risk
C . Credit risk
D . Exchange rate and credit risk

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Answer: B