Suppose the spot exchange rate for the Canadian dollar is Can$1.29 and the six-month forward rate is Can$1.31. a. Which is worth more, a U.S. dollar or a Canadian dollar? Canadian dollar U.S. 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$2.50? (Round your answer to 2 decimal places, e.g., 32.16.) Cost in U.S. dollars S 1.93 c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? Discount O Premium d. Which currency is expected to appreciate in value? Canandian dollar O U.S. dollar e. Which country do you think has higher interest ratesthe United States or Canada? Canada O United States