The Exchange Rate for the U

The exchange rate for the U.S. dollar in the spot market is US$1 = $1.06. In the 1-year forward market the rate is US$1 = $1.09. In this case, the U.S. dollar is:

A) Less expensive in the future than it is today from a Canadian perspective.
B) Selling at a premium relative to the Canadian dollar.
C) Priced such that an arbitrage opportunity exists.
D) Indicative of higher inflation rates in the U.S. than in Canada.
E) Appreciating against all other currencies.