PART I For our non-fixed interest rate loans, the interest rates will change in accordance with the fixed rates of  the banks we borrowed from. Assuming an increase or decrease of 1% in the interest rates of our non-fixed  interest rate loans, our interest payments in 2010 would have increased or decreased by NT$37 million (US$1.28  million). We have not used any derivative financial instruments to hedge interest rate risk. We have not been  exposed nor do we anticipate being exposed to material risks due to changes in interest rates. We anticipate that  our cash, cash equivalents and cashflow from operations will be sufficient to fund our working capital needs and  capital expenditure plans for the foreseeable future. As of December 31, 2010, our cash and cash equivalents  amounted to NT$90.9 billion (US$3.1 billion). The risk associated with fluctuating interest rates is principally  confined to our cash deposits in banks, which is one of the many ways we manage our capital, and interest  income accounts for only a very small percentage of our total revenue. Therefore, we believe our exposure to  interest rate risk is immaterial.  We are exposed to foreign currency risk as a result of (i) our foreign currency and derivative trading  activities; (ii) our telecommunications equipment being sourced from overseas suppliers; (iii) our international  settlement payments associated with our services for international calls and roaming traffic; and (iv) mutual  funds denominated in foreign currencies.  We entered into currency swap and forward exchange contracts to reduce our exposure to foreign currency  risk due to fluctuations in exchange rates. Outstanding currency swap and forward exchange contracts on  December 31, 2010 were as follows:  Net gain arising from all of our foreign currency trading, hedging and derivative financial instruments for  the year ended December 31, 2009 was NT$63.4 million, including realized settlement losses of NT$62.9 million  and valuation gain of NT$126.3 million.  Net gain arising from all of our foreign currency trading, hedging and derivative financial instruments for  the year ended December 31, 2010 was NT$63.1 million (US$2.2 million), including realized settlement gain of  NT$35.2 million (US$1.2 million) and valuation gain of NT$27.9 million (US$1.0 million).  We are exposed to equity price risk as a result of our available-for-sale equity securities, including publicly- traded equities, NT dollar- and foreign currency-denominated mutual funds, and exchange-traded funds, or ETFs,  and we manage our equity investment portfolio in accordance with our internal regulations. The table below presents the carrying amount and unrealized gain or loss for our available-for-sale equity  securities as of December 31, 2010.  Equity Price Risk  Foreign Currency Risk  FX instrument Currencies involved Maturity Period Contract Amount Currency swap contracts US$/NT$ 2011.01-2011.03 US$25 million/NT$767 million Forward exchange contracts-Buy NT$/US$ 2011.01 NT$18 million/US$1 million 119