distribution hedge not out of money anymore, page-2

Thanks for this Ngairc,

Still seems strange that you would create a hedge to get rid of forex risks (which I undertand the logic of doing) but then expose yourself to large potential cash outflows if the counter party decided to terminate (i.e. as is the case with BJT's capital hedge) and the hedge was 'out of the money'... seems counter intuitive in terms of risk mitigation ???

Is there upside that I am not understanding here?