Suppose the spot exchange rate for the Canadian dollar is Can$1.06 and the six-month forward rate is Can$1. Required: (a) One Canadian dollar is…

Suppose the spot exchange rate for the Canadian dollar is Can$1.06 and the six-month forward rate is Can$1.11.Required:(a)One Canadian dollar is worth U.S. $. (Do not include the dollar sign ($). Round your answer to 4 decimal places. (e.g., 32.1616))(b)Assuming absolute PPP holds, the cost in the United States of an Elkhead beer is U.S. $if the price in Canada is Can$2.50. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))(c)The U.S. dollar is selling at a relative to the Canadian dollar.(d)The is expected to appreciate in value relative to the.(e)Interest rates are probably higher in