a new analyst in the finance department of an MNC makes the following statements

statement 1: in general, when speculating on exchange rate movements, the speculator will borrow the currency that is expected to appreciate or invest in the country whose currency is expected to depreciate.

statement 2: the fundamental logic for the institutional specualtion based on expected currency appreciation is "buy low today and sell high later" , for depreciation is "sell high today and biy low later"

both statements are incorrect

only statement 2 is correct

only statement 1 is correct

both statements are correct