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On the Milan Stock Exchange (MIL), Fiat stock closed at 5.84 EUR per share on Thursday, March 3, 2005. Fiat trades as and ADR on
On the Milan Stock Exchange (MIL), Fiat stock closed at 5.84 EUR per share on Thursday, March 3, 2005. Fiat trades as and ADR on the NYSE. One underlying Fiat share equals one ADR. On March 3, the EUR/USD spot exchange rate was 1.3112.
What is the noarbitrage USD price of one ADR?
If Fiat ADRs were trading at $7 when Fiat stock closed at 5.84 EUR, what could you do to earn a profit?
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