The statements relate to International Financial Environment. Denote the code of the statements being correct or incorrect.

Statement (I) : Foreign exchange risk denotes the variance of domestic currency value of assets, liabilities, or operating income attributable to anticipated changes in exchange rates.

Statement (II) : Foreign exchange exposures denote the sensitivity of the real value of assets, liabilities and operating income to unanticipated changes in exchange rates expressed in its functional currency.

A

Both the statements are correct.
B

Both the statements are incorrect.
C

Statement (I) is correct while Statement (II) is incorrect.
D

Statement (I) is incorrect while Statement (II) is correct.

Question