Suppose the spot exchange rate for the Canadian dollar is Can$109 and the six-month forward...
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Suppose the spot exchange rate for the Canadian dollar is Can$109 and the six-month forward rate is Can$106. a. Which is worth more a US 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$3.04? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Is the US 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? worthmore US dollar or a Canadian dollar? bost in US dollars Gus dollar selling at a premium or a discount relative to the Canadian dollar delen is expected to appreciate in value? and count certark has nigner interest rates the United States or Canada
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