Royal Minty of Britain has purchased $10,000$ ounces of silver from Silver Products at US $$16\mathrm{.}60,$ payable in $180$ days. The current spot

rate is $1\mathrm{.}8127($$US$/)$ and the $180-$day forward is $1\mathrm{.}7863.$ The CEO at Royal Minty suggests that the spot rate in six months time will

be $1\mathrm{.}7915.$

Interest rates in Britain are currently $4\mathrm{.}70$ percent for $180$ days and $1\mathrm{.}15$ percent in the United States.

a$.$ Outline the various options available to Royal Minty to handle its foreign exchange exposure.

b$.$ Make a recommendation.