M: Hello, Jane.
W: Hello, Paul.
M: Please come in. I'm just getting ready to go home. Susan is expecting me for dinner. I want it to be on time for a change.
W: Look, I'm terribly sorry to drop in at this time on Friday, Paul. But it is rather important.
M: That's OK. What's the problem?
W: Well, Paul, I won't keep you long. You see there is a problem with the exchange rates. The Indian rupee has taken a fall on the foreign exchange market. You see there has been a sharp increase in India's balance of payment deficit.
M: I see. That's serious, isn't it?
W: Well, as you know, there have been reports of unrest in India, and the prospects for the rupee look pretty gloomy.
M: And that's going to affect us, as if we didn't have enough problems on our hands.
W: So I thought it would be wise to take out forward exchange cover to protect our position on the outstanding contracts.
M: Just a minute. Forward exchange cover now what does that mean exactly?
W: Well, it means that JL Motors enters into a commitment to sell Indian rupees at the present rate.
M: I see. And how would that benefit us?
W: Well, JL Motors won't lose out if the Indian rupee falls further.
M: What will it cost, Jane?
W: A small percentage, about 1%. And that can be built into the price of the bike.
M: Well, I don't suppose there's much choice. All right, Jane. Let's put it into action.