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 firms 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.

Both statements are correct

S1 is correct and S2 is false

Both statements are false

S2 is correct but S1 is false