Business, 26.10.2019 01:43 griffislandon74
Suppose the spot exchange rate for the canadian dollar is can$1.02 and the six-month forward rate is can$1.04. 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$3.15? (round your answer to 3 decimal places, e. g., 32.161.) 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$1.02 and the six-month forward rate is...
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