All of Eastman's protection against the risk of a rising dollar -- which would have the effect of decreasing the dollar value of foreign revenues -- is provided in the form of financial hedging, primarily with options that enable the company to "lock in an exchange rate that we want to receive in receivables," says Ryder.

"The euro and the yen are our greatest exposures," he explains. Under the current environment, in which the euro is worth nearly $1.50, "we will sell euros at 150 and lock in that rate." When the euro hits 150, he adds, "we may choose to buy puts so we're protected."

Most of this hedging is of the plain vanilla variety, involving short-term instruments. In addition, he says, he hedges "a certain portion of anticipated sales," by buying longer contracts, typically of no more that two- to three-years' duration. All this is done to offset business risks, and qualifies for hedging treatment under FAS 133, eliminating the need to mark the instruments to market.

In addition, there are swaps. "Let's say I'm funding something today in dollars but I really need Swiss francs in the next 60 days," says Treasury Strategies' Dowling. One solution, she says, may be to buy or sell an offsetting option, swapping out the exposure.