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To: Sam who wrote (1552)	11/14/1997 9:48:00 AM
From: tom pope	Respond to of 9256

>>I can't believe that they had a hedging program that exposed them to unlimited losses. That is inexcusable.<< not really. the point of a hedging program is to neutralize the effect of currency fluctuations on future payable streams. the loss will be balanced by a lower cost of local currency when these streams have to be funded. obviously, if they had not hedged their future local currency obligations they would have done very well - but that would have been currency speculation.