Suppose the spot exchange rate for the Canadian dollar is Can$$1\mathrm{.}12$ and the six$-$month forward rate is Can$$1\mathrm{.}10.$

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

Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$$3\mathrm{.}34?$

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

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

Which currency is expected to appreciate in value?

Which country do you think has higher interest rates$$the United States or Canada?