Place the cursor in the paragraph in which you want the initial character to have a drop cap, and then open the Format menu and select Drop Cap.
In the Position area of the Drop Cap dialog box, click Dropped or In Margin to specify where the drop cap should appear.
Select settings in the Options area for example the Font, the number of Lines to Drop (defaults to 3 lines), and the Distance from Text (in inches). Then click OK.
The drop cap is applied to the paragraph. Click anywhere outside the drop cap to deselect it.
INTRODUCTION
Drop caps can make your documents appear very professional, especially if you are creating a book or chapter or are applying desktop-publishing effects to your text.
