A Malaysian firm is due to receive one million Australian dollar (A$) from an Australian firm in three months. Which of the following is the best description of the foreign exchange risk involved in this transaction?

Select one: A. The Malaysian firm is exposed to the risk that the Malaysian Ringgit can appreciate against the A$ in three months. B. The Australian firm is exposed to the risk that the A$ can depreciate against the Malaysian Ringgit in three months. C. The Malaysian firm is exposed to the risk that the Malaysian Ringgit can depreciate against the A$ in three months. D. The Australian firm is exposed to the risk that the A$ can appreciate against the Malaysian Ringgit in three months.