Question
On the Tokyo Stock Exchange, Honda Motor Company stock closed at 3,207 per share on Monday, May 6, 2019. Honda trades as an ADR on
On the Tokyo Stock Exchange, Honda Motor Company stock closed at 3,207 per share on Monday, May 6, 2019. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On May 6, 2019, the /$ spot exchange rate was 111.07/$1.00. At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?
| a | $2,907 |
| b | $27.02 |
| c | $0.037 |
| d | $28.87 |
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
