To Hedge Translation Exposure, MNCs Could ____ That Their Foreign

To hedge translation exposure, MNCs could ____ that their foreign subsidiaries receive as earnings to create a cash outflow in the currency to offset the earnings received in that currency.

A) purchase the currency forward
B) sell the currency forward
C) purchase futures contracts of the currency
D) purchase the currency forward OR purchase futures contracts of the currency
E) None of these are correct.