interest rate to a variable interest rate based on the three-month libor plus 2.05% ( 2.05 % ) ( 2.34% ( 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% ( 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 2019 obligations under the contracts exceed our obligations to the counterparties .
the following table illustrates the effect that a 10% ( 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: .

October 31, 2009
November 1, 2008
Fair value of forward exchange contracts asset (liability)
$6,427
$(23,158)
Fair value of forward exchange contracts after a 10% unfavorable movement in foreign currency exchange rates asset (liability)
$20,132
$(9,457)
Fair value of forward exchange contracts after a 10% favorable movement in foreign currency exchange rates liability
$(6,781)
$(38,294)

fair value of forward exchange contracts after a 10% ( 10 % ) unfavorable movement in foreign currency exchange rates asset ( liability ) .
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$ 20132 $ ( 9457 ) fair value of forward exchange contracts after a 10% ( 10 % ) favorable movement in foreign currency exchange rates liability .
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$ ( 6781 ) $ ( 38294 ) 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 2019 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. .

Question: Analyse this data from a financial earnings document. what is the the interest expense in 2009?
Choices:
-3.8
3.8
7.6
0.1
1
Correct choice index: 1