interest rate to a variable interest rate based on the three-month LIBOR plus 2.05% (2.34% as of October 31, 2009).
If LIBOR changes by 100 basis points, our annual interest expense would change by $3.8 million.
Foreign Currency Exposure As more fully described in Note 2i.
in the Notes to Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K, we regularly hedge our non-U.
S.  dollar-based exposures by entering into forward foreign currency exchange contracts.
The terms of these contracts are for periods matching the duration of the underlying exposure and generally range from one month to twelve months.
Currently, our largest foreign currency exposure is the Euro, primarily because our European operations have the highest proportion of our local currency denominated expenses.
Relative to foreign currency exposures existing at October 31, 2009 and November 1, 2008, a 10% unfavorable movement in foreign currency exchange rates over the course of the year would not expose us to significant losses in earnings or cash flows because we hedge a high proportion of our year-end exposures against fluctuations in foreign currency exchange rates.
The market risk associated with our derivative instruments results from currency exchange rate or interest rate movements that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged.
The counterparties to the agreements relating to our foreign exchange instruments consist of a number of major international financial institutions with high credit ratings.
We do not believe that there is significant risk of nonperformance by these counterparties because we continually monitor the credit ratings of such counterparties.
While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of our exposure to credit risk.
The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed our obligations to the counterparties.
The following table illustrates the effect that a 10% unfavorable or favorable movement in foreign currency exchange rates, relative to the U. S.  dollar, would have on the fair value of our forward exchange contracts as of October 31, 2009 and November 1, 2008:
## Table 0 ##
The calculation assumes that each exchange rate would change in the same direction relative to the U. S.  dollar.
In addition to the direct effects of changes in exchange rates, such changes typically affect the volume of sales or the foreign currency sales price as competitors’ products become more or less attractive.
Our sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency selling prices.
People’s Bank and Subsidiaries Notes to Consolidated Financial Statements—(Continued) vested under the terms on which it was initially awarded, or (b) termination of the option holder’s employment with People’s.
The purpose of the acceleration was to eliminate compensation expense associated with these options in future years upon the adoption of SFAS No.123-R in the first quarter of 2006.
As a result of the acceleration, options to purchase 0.9 million shares of common stock became immediately exercisable.
Substantially all of these options were in-the-money at the time of acceleration.
The accelerated vesting of these options eliminated potential pre-tax compensation expense through 2008 of approximately $1.7 million, including approximately $0.8 million in 2006.
People’s recorded a one-time charge of $0.7 million in 2005 as a result of the accelerated vesting, which is included in compensation and benefits in the Consolidated Statements of Income.
Stock Options Awarded in 2006 People’s granted 262,882 stock options in 2006.
All stock options are non-statutory fixed options that were granted at exercise prices equal to the fair value of People’s common stock at the respective grant dates.
The estimated weighted-average grant-date fair value of these options was $6.48 per option, using the Black-Scholes option-pricing model with assumptions as follows: dividend yield of 2.8%; expected volatility rate of 23%; riskfree interest rate of 4.6%; and expected option life of 5 years.
Expected volatilities were based on historical volatilities from People’s traded common stock.
The expected term of stock options represents the period of time that options granted are expected to be outstanding.
People’s used historical data to estimate voluntary suboptimal (early) exercises by continuing employees, and estimates of post-vest option exercise or forfeiture by terminated employees.
Suboptimal exercise data and employee termination estimates are incorporated into Monte Carlo simulations of People’s common stock prices to calculate the expected term.
The risk-free interest rate approximated the U. S.  Treasury yield curve at the time of the grant.
Compensation expense is recognized on a straight-line basis generally over the option vesting period and totaled $0.3 million in 2006.
Unamortized compensation cost for unvested stock options, which reflects an estimated forfeiture rate of 6.0% per year for the vesting periods, totaled $1.0 million at December 31, 2006, and is expected to be recognized over the remaining weighted-average period of 3.1 years.
The following is a summary of stock option activity under People’s Incentive Plan:
## Table 1 ##
People’s utilized a portion of the proceeds from the sale of its credit card business to prepay slightly over $1.0 billion of long-term borrowings.
In addition, derivative positions with notional values of $770 million were canceled.
Liability restructuring costs totaling $133.4 million are included in total non-interest expense for 2004 in the Consolidated Statements of Income.
Business Segment Results People’s operations are divided into two primary business segments that represent its core businesses, commercial banking and consumer financial services.
In addition, the treasury area is responsible for managing People’s securities portfolio, short-term investments, wholesale funding activities, such as borrowings and the funding center.
The income or loss for the funding center, which includes the impact of derivative financial instruments used for risk management purposes, represents the interest rate risk component of People’s net interest income as calculated by People’s funds transfer pricing model (“FTP”), to derive each operating segment’s net interest income.
## Table 2 ##
People’s uses an internal profitability reporting system to generate information by operating segment, which is based on a series of management estimates and allocations regarding funds transfer pricing, the provision for loan losses, non-interest expense and income taxes.
These estimates and allocations, some of which can be subjective in nature, are continually being reviewed and refined.
Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of People’s as a whole.
FTP is used in the calculation of each operating segment’s net interest income, and measures the value of funds used in and provided by an operating segment.
The difference between the interest income on earning assets and the interest expense on funding liabilities, and the corresponding FTP charge for interest income or credit for interest expense, results in net spread income.
The provision for loan losses for the Commercial Banking and Consumer Financial Services segments is generally based on a five-year rolling average net charge-off rate for the respective segment.
People’s allocates a majority of non-interest expenses to each business segment using a full-absorption costing process.
Direct and indirect costs are analyzed and pooled by process and assigned to the appropriate business segment and corporate overhead costs are allocated to the business segments.
Income tax expense is allocated to each business segment using a constant rate, based on an estimate of the consolidated effective income tax rate for the year.
In the second quarter of 2006, the results of the funding center, previously included in “Other,” were reclassified to Treasury.
In the first quarter of 2006, People’s revised its FTP methodology assumptions relating to deposit products with indeterminate maturities, based on a comprehensive historical analysis of the implied maturities and repricing characteristics of those deposits.
As a result, the duration for most of those deposits was lengthened, which in turn increased their value and corresponding FTP credit.
Segment information for all periods presented has been restated to reflect the changes resulting from the reclassification of the funding center to Treasury and the revised FTP methodology assumptions.

<table><tr><td></td><td>October 31, 2009</td><td>November 1, 2008</td></tr><tr><td>Fair value of forward exchange contracts asset (liability)</td><td>$6,427</td><td>$-23,158</td></tr><tr><td>Fair value of forward exchange contracts after a 10% unfavorable movement in foreign currency exchange rates asset (liability)</td><td>$20,132</td><td>$-9,457</td></tr><tr><td>Fair value of forward exchange contracts after a 10% favorable movement in foreign currency exchange rates liability</td><td>$-6,781</td><td>$-38,294</td></tr></table>
<table><tr><td></td><td>Shares Subject To Option</td><td> Weighted Average Exercise Price</td><td> Weighted-Average Remaining Contractual Term (in years)</td><td> Aggregate Intrinsic Value (in millions)</td></tr><tr><td>Options outstanding at December 31, 2003</td><td>2,674,587</td><td>$11.82</td><td></td><td></td></tr><tr><td>Granted</td><td>385,913</td><td>19.86</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-61,031</td><td>11.43</td><td></td><td></td></tr><tr><td>Exercised</td><td>-1,156,575</td><td>12.19</td><td></td><td></td></tr><tr><td>Options outstanding at December 31, 2004</td><td>1,842,894</td><td>13.28</td><td></td><td></td></tr><tr><td>Granted</td><td>249,045</td><td>25.36</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-17,531</td><td>16.75</td><td></td><td></td></tr><tr><td>Exercised</td><td>-656,551</td><td>11.60</td><td></td><td></td></tr><tr><td>Options outstanding at December 31, 2005</td><td>1,417,857</td><td>16.14</td><td></td><td></td></tr><tr><td>Granted</td><td>262,882</td><td>31.41</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-3,240</td><td>31.31</td><td></td><td></td></tr><tr><td>Exercised</td><td>-252,351</td><td>13.88</td><td></td><td></td></tr><tr><td>Options outstanding at December 31, 2006</td><td>1,425,148</td><td>$19.32</td><td>6.7</td><td>$36.0</td></tr></table>
<table><tr><td></td><td colspan="3">Net Income</td></tr><tr><td> Years ended December 31 (in millions)</td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Commercial Banking</td><td>$41.9</td><td>$45.7</td><td>$45.1</td></tr><tr><td>Consumer Financial Services</td><td>85.8</td><td>94.2</td><td>90.0</td></tr><tr><td>Treasury</td><td>-26.0</td><td>-25.0</td><td>-60.5</td></tr><tr><td>Total reportable segments</td><td>101.7</td><td>114.9</td><td>74.6</td></tr><tr><td>Other</td><td>22.3</td><td>22.2</td><td>125.1</td></tr><tr><td>Total Consolidated</td><td>$124.0</td><td>$137.1</td><td>$199.7</td></tr></table>

Question: In the year with the most Forfeited for Shares Subject To Option, what is the growth rate of Granted for Shares Subject To Option?
Answer: 0.05556