The statements relate to international financial environment. Denote the statements being correct or incorrect.
Statement I Foreign exchange risk denotes the variance of domestic currency value of assets, liabilities, or operating income attributable to anticipated changes in exchanges 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 statements are correct

B. Both statements are incorrect

C. Statement t is correct, but Statement II is incorrect

D. Statement I is incorrect, but Statement II is correct

Answer: Option D