You are a CFO of an Australian multinational firm. If you fear the Australian dollar will rise against the euro, with a resulting adverse change in the Australian dollar value of the equity of your Spanish subsidiary which uses euros, you can hedge this translation exposure by ____________.

Select one:

a. reducing cash in the Australian dollar

b. delaying accounts payable in the euro

c. tighten credit terms to decrease accounts receivable in the Australian dollar

d. increasing borrowing in the Australian dollar