Newport-based importer of discount european wine

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T. Elliott Inc. is an Newport-based importer of discount European wine. Which of the following two statements is correct?

S1: CEO Teressa expects a decrease in the value of the EUR. Based on her expectation, she should hedge the firm's FX operating exposure to the EUR.

S2: CEO Teressa could choose to hedge some of the FX operating exposure by moving some of its costs into EUR.

-S2 is correct but S1 is false

-Both statements are false

-Both statements are correct

-S1 is correct and S2 is falseFYI: I know the first choice is incorrect.

Reference no: EM133111979

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