Which of the following statements is true? S1: Bananas Inc. a net importer that has an FX business exposure of -2.36 to the AUD, can hedge FX equity exposure by issuing new (additional) AUD debt. S2: Kolbe Inc. a marketing consulting firm that operates in Australia and has a FX business exposure of 0.85 (to the AUD) can hedge its FX equity exposure by issuing new (additional) AUD denominated debt.

Both statements are correct

S1 is correct and S2 is false

S2 is correct but S1 is false

Both statements are false