Each Nokia Corp. ADR $("$NOK$")$ on the New York Stock Exchange is equivalent to I share of Nokia Corp. $("$NOKIA$")$ on the Helsinki Stock Exchange. The exchange rate for the Euro $($which is the currency used for Finland$)$ is $$1\mathrm{.}076906/.$ The current price of Nokia Corp. in Finland is $3\mathrm{.}2705/$share$.$ Nokia stock can be converted in Nokia ADR and vice versa.

a$.$ Calculate the expected price of the Nokia ADR.

b$.$ The Nokia ADR is currently trading at $$3\mathrm{.}55/$ADR$.$ Based on this, and ignoring transaction costs, briefly explain what should happened to the following and why:

i$.$ Demand for Nokia stock

ii$.$ Demand for Nokia ADRs

c$.$ Assuming only the Nokia stock price adjusts, calculate the Nokia stock price that would result in equilibrium between the Nokia stock price and Nokia ADRs.

Each GSK plc $($formerly GlaxoSmithKline plc$)$ ADR $("$GSK$")$ on the New York Stock Exchange is equivalent to $2$ shares of GSK plc $("$GSK$")$ on the London Stock Exchange. The exchange rate for the Pound is $$\frac{1\mathrm{.}258632}{}.$ The current price of GSK plc in Britain is $1669\mathrm{.}20$ pence$/$share$.$ There are $100$ pence in a Pound. GSK stock can be converted in GSK ADR and vice versa.

d$.$ Calculate the expected price of the GSK ADR.