e rate for the Canadian dollar si Can$$1\mathrm{.}05$ and the six$-$month forward rate is Can$$1\mathrm{.}07.$

a$.$ Which is worth more. a U$.$S$.$ dollar or a Canadian dollar?

$.$b Asuming absolute P holds, what si hte cost ni hte United States of an

Elkhead beer fi the price ni Canada is Can$$2\mathrm{.}50?$ Why might the beer actually sell at a different price in the United States?

c$.$ Is the U$.$S$.$ dollar selling at a premium or a discount relative to the Canadian