QUESTION 42 10 points Save Answer Royal Dolton Inc. of the U.S. has purchased 20,000 ounces of silver from Gringotts of Britain at US$6.25, payable in 180 days. The current spot rate is 1.4188 ($U.S. / Pound) and 180-day forward is 1.4039. The CEO at Royal Dolton Inc. believes that the spot rate in six months time will be 1.4125. Interest rates in Britain are currently 4.33 percent for 180 days and 2.11 percent in the United States. A. Outline the various options available to Royal Dolton's Inc. to handle its foreign exchange exposure. (7 marks) B. Make a recommendation which option is best explaining your reasons. (3 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)