Suppose the spot exchange rate for the U.S. dollar is CAD$1.08 and the six-month forward rate is CAD$110. a. Which is worth more, a U.S. dollar or a Canadian dollar? O US dollar O 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 CAD$3.45?( the answer to 2 decimal places. Omit $ sign in your response.) Cost in US dollar $ c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? O Discount O Premium d. Which currency is expected to appreciate in value? O Canada dollar OU.S. dollar Acti Go to Prey 1 of 1 Next