On the Tokyo Stock Exchange , Honda Motor Company stoc k closed at 2,907 per share on Mon day , June 6 , 201 6 . Honda trades as and ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016 , the / $ spot exchange rate was 107.57 / $ 1.00. a. At this exchange rate, what is the no - arbitrage U. S. dollar price of one ADR? b. By compa ri son, Honda ADRs traded at $27.18 . Do you think an arbitrage opportunity exists