Sve & EX The exchange rate for the U.S. dollar in the spot market is US$1 = $106. In the T-year forward market the rate is US$1 = $1.09. In this case, the U.S. dollar is Multiple Choice Indicative of higher inflation rates in the US than in Canada Priced such that an arbitrage opportunity exists Appreciating against all the currencies Selling at a premium relative to me Canadian dollat. Less expensive in the future then it is today from a Canadian perspective