Problem 31-4 Using Spot and Forward Exchange Rates Suppose the spot exchange rate for the Canadian dollar is Can$1.08 and the six-month forward rate is Can$1.10 a Which is worth more, a U.S. dollar or a Canadian dollar? O Canadian dollar O u.s. 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$3.09? (Enter your answer as directed, but do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Cost in U.S. dollars Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? O premium O discount d. Which currency is expected to appreciate in value? Canadian dollar O U.S. dollar Which country do you think has higher interest rates-the United States or Canada? O United States Canada