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Suppose the spot exchange rate for the Canadian dollar is Can$1.08 and the six-month forward rate is Can$1.10. a. Which is worth more, a U.S.

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Suppose the spot exchange rate for the Canadian dollar is Can$1.08 and the six-month forward rate is Can$1.10. a. Which is worth more, a U.S. dollar or a Canadian dollar? b. Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$3.09? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? d. Which currency is expected to appreciate in value? e. Which country do you think has higher interest rates-the United States or Canada? a. Worth more, a U.S. dollar or a Canadian dollar? b. Cost in U.S. dollars c. U.S. dollar selling at a premium or a discount relative to the Canadian dollar d. Which currency is expected to appreciate in value? e. Which country do you think has higher interest rates--the United States or Canada

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