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.