You're the CFO of the Overseas Sprocket Company, which imports a great deal of product from Europe and Far East and is continually faced with exchange rate exposure on unfilled contracts. Harry Byrite, the head of purchasing, has a plan to avoid exchange rate losses. He suggests that the firm borrow enough money from the bank to buy aa six month supply of foreign exchange that would be kept in a safety deposit box until used. "We'd never have another unexpected exchange raate loss again, "says Harry. Prepare a polite response to Harrry's Idea. Explain why you do or don't like it, and suggest an alternative if you feel one is appropriate.

Please draft a Proper response.