Suppose the spot exchange rate for the Canadian dollar is Can$1.03 and the six-month forward rate is Can$1.01. Required: (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$2.44? (Enter your answer as directed, but do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Cost in U.S dollar

$