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In the NYSE, Ford stock closed at USD100 per share. On the same day, the exchange rate was USD1.25/GBP. Ford stock trades as an ADR
In the NYSE, Ford stock closed at USD100 per share. On the same day, the exchange rate was USD1.25/GBP. Ford stock trades as an ADR in the OTC market in the United Kingdom. Three Ford shares are packaged into one ADR. What is the approximate no-arbitrage GBP price of one ADR?
Question 21 options:
375.00.
125.00.
26.67.
240.00.
80.00.
300.00.
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