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Business, 12.12.2020 17:10 myrep12

Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is Can$1.14. 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$2.85?
C. Is the U. S. dollar selling at a premium or a discount relative to the Canadian dollar?D. Which currency is expected to appreciate in value?E. Which country do you think has higher interest rates - the United States or Canada?

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Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is...
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