Why the ans of 52 is not C because of lock up period we have both kind of risk na and derivative used is future(in alternate) and in future we don’t have liquidity or counterparty risk ?
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If you look at the question properly, you will understand the question is talking about both counterparty risk and liquidity risk. Derivatives in AI are usually traded in OTC market which have counterparty default risks as well as liquidity risks. Currencies are very liquid. Lock up period does have liquidity risk as for example when you invest in hedge funds, you can only get back the money after the lock up period gets over but has low/No counterparty default risk.
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