Outline the various options available to royal dolton inc

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Royal Dolton Inc. of the US has purchased 20,000 ounces of silver from Gringotts of Britain at US$6.25, payable in 180 days. The current spot rate 1.4188 ($US/pound) and 180-day forward is 1.4039. The CEO at Royal Dolton Inc. believe that the spot rate in six months time will be 1.4125
Interest rate in britain are currently 4.33 percent for 180 days and 2.11 percent in the United States

Problem A. Outline the various options available to Royal Dolton's Inc. to handle its foreign exchange exposure. Make a recommendation which option is best explaining your reason

Reference no: EM132729602

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