ADR ArbitrageChina Telecom Corp. is simultaneously listed on Hong Kong Stock Exchange (HKSE) and NewYork Stock Exchange (NYSE). It trades as an ORD on the HKSE and as an ADR on the NYSE.The ordinary share (ORD) price of China Telecom is HKD 4 on HKSE. The spot rate isHKD7.75/USD. The depository bank charges a depository fee of 10 cents per ADR. (a) Please find the symbol of China Telecom Corp on NYSE, the ADR ratio, the ADR

program, and the depositary bank.(b) If the price of the ADR is $52 on NYSE, if there is an arbitrage opportunity. If youranswer is yes, how do you design the arbitrage strategy and how much is your profit?How does the arbitrage activity affect the price of ADR and ORD in the two markets?(c) If the price of the ADR is $50 on NYSE, if there is an arbitrage opportunity. If youranswer is yes, how do you design the arbitrage strategy and how much is your profit?How does the arbitrage activity affect the price of ADR and ORD in the two markets?