Suppose the spot exchange rate for the Canadian dollar is Can$1.07 and the six-month forward rate is Can$1.09.    a. Which is worth more, a U.S. dollar or a Canadian dollar?       multiple choice 1 U.S. dollar 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$2.99? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)            c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar?       multiple choice 2 discount premium    d. Which currency is expected to appreciate in value?       multiple choice 3 Canadian dollar U.S. dollar      e. Which country do you think has higher interest rates—the United States or Canada?       multiple choice 4 Canada the United States

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A: Here,

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A:

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