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Category > Business & Finance Posted 31 May 2017 My Price 11.00

Suppose the spot exchange rate for the Canadian dollar

Suppose the spot exchange rate for the Canadian dollar is Can$1.03 and the six-month forward rate is Can$1.01. Required: (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$2.44? (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 dollar $

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Status NEW Posted 31 May 2017 05:05 AM My Price 11.00

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