2008 AM, Ques 7-C, Currency Credit Risk

For part 1 re: who bears the credit risk for the forward currency position. We are not discounting here b/c it’s implied that they are asking for current credit risk? We would only discount back is specifically asked for current value of potential risk?

Yeah, I’ve been having a bit of trouble with the whole discounting or not dilemma. Most of the time this is not clear… Does anyone have figured out a clear way to know when to discount or not (other than potential vs current). What I’m trying to say is are there instruments where you automatically discount (i.e american options) and others where you don’t discount (i,e european options). Thanks. J.