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Suppose the spot exchange rate for the Canadian dollar is Can$1.19 and the six-month forward rate is Can$1.16. Assuming absolute PPP holds, what is the

Suppose the spot exchange rate for the Canadian dollar is Can$1.19 and the six-month forward rate is Can$1.16. Assuming absolute PPP holds, what is the current cost in the United States of a beer if the price in Canada is Can$3.75?

	$2.48
	$2.54
	$3.15
	$3.42
	$3.51

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