Final answer:
The U.S. dollar is worth more than the Canadian dollar, as evidenced by the spot exchange rate of CAN$1.34 and the six-month forward rate of CAN$1.41 for US$1, indicating that it takes more Canadian dollars to buy a single U.S. dollar.
Step-by-step explanation:
When assessing whether the U.S. dollar or the Canadian dollar is worth more, it is essential to look at the exchange rates provided. In this case, the spot exchange rate is CAN$1.34 for US$1, and the six-month forward rate is CAN$1.41 for US$1. This indicates that you need 1.34 Canadian dollars to buy 1 U.S. dollar at the current rate, and you will need 1.41 Canadian dollars to buy 1 U.S. dollar six months from now. Therefore, the U.S. dollar is worth more than the Canadian dollar, both at the current spot exchange and for the future forward rate.
Exchange rates fluctuate over time due to various factors, including economic indicators, interest rates, and market sentiment. For example, the U.S. dollar has experienced periods of appreciation and depreciation against the Canadian dollar since 1980, demonstrating the dynamic nature of foreign exchange markets.