Deutsche Telekom (DTEGY) stock is traded on both the Frankfurt Stock Exchange in Germany and on the New York Stock Exchange. On the Frankfurt bourse, DTEGY closed at a price of 54.34 on Wednesday. On the same day, DTEGY closed in New York at $83.55 per share. To prevent arbitrage trading between the two exchanges, the shares should trade at the same price when adjusted for the exchange rate. The $/ exchange rate on March 5 was $1.5203/1.00. Thus, 54.34 $1.5203/ = $82.61, while the closing price in New York was $83.55. The difference is easily explainable by the fact that: Multiple Choice transactions costs exceeded the price difference, so no arbitrage was possible even for market makers. no one noticed the arbitrage that day, but in a day or so the opening price will adjust. o the New York market closes several hours after the Frankfurt exchange, and thus market prices or exchange rates had changed slightly. none of the options