RPPP & Arbitrage: Suppose that you are contemplating to buy an iPhone next month. You can buy the iPhone either in Canada or in the United States. The price of the iPhone in Canada today is P_0,$ =700 and the price of the same iPhone in the U.S. is P_0,U$ = U$685. You also observe that the monthly inflation in Canada is _$ = 3% and the monthly inflation in the U.S. is _U$ = 2%. If one month from now the exchange rate (direct quote) between Canadian and the U.S. dollar is S_$/U$ = 1.0505, where would you like to purchase the iPhone to make arbitrage profit if the Relative Purchasing Power Parity (RPPP) holds?