Thanks for your comments:
I have followed the advice that you suggested:
From the view menu I created the header/footer, and from the insert menu, I
inserted my graphic. I then typed my letter and printed it. All of the type
is at the bottom of the graphic, which covers about three-quarters of the
page and is centered. I then clicked in the graphic to highlight it and then
right click to bring up the menu, I clicked on format graphic and then on
wrapping. None of the options under the wrapping page are highlighted. I
want to indicate "none" so that the text will flow as if it is over the
graphic. Another way to express this is that the graphic will appears as if
it is in the background.

Alvin,

If the text is wrapping around the picture, then it is just a normal
graphic and not a watermark.

A watermark must be placed in the Header or Footer section.  Once you
place the graphic in the header (or footer) you can then change it from a
graphic to a watermark and place it anywhere you want on the pag

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