Hello Rick and David,
That's definitely his knee: The traditional position of the right hand is the shin close to the knee (sometimes it pretty much covers the knee, too); the lower leg is visible (with only the feet hidden among the foliage). [The left hands usually rests on top of the left knee though.]
The pinky of the right hand always shows an extension which should be the long finger nail (these tend to curl towards the tip when growing longer; in this carving it's more pronounced than usual). [On the left hand, the thumb usually shows what seems to be an extended finger nail...]
Those are definitely fangs if you compare them with less stylized examples; even in this more stylized representation the animal-like, flared lips are clearly visible around the fangs (indicated by the traditional "striped" area).
Regards,
Kai
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