please help on both parts of question if you know correct answer

(Related to Problem 1 of Chapter 13) On the Tokyo Stock Exchange, Honda Motor Company stock closed at 2,907 per share on Monday, June 6, 2016. 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. By comparison, Honda ADRs traded at $29.02. Do you think an arbitrage opportunity exists? If total transaction costs is less than $2, there is no arbitrage opportunity If total transaction costs is less than $2, there is an arbitrage opportunity. If total transaction costs is greater than $2, there is an arbitrage opportunity, O If total transaction costs is greater than $4, there is an arbitrage opportunity (Related to Problems 1 and 2 of chapter 13) On the Tokyo Stock Exchange, Honda Motor Company stock closed at $2,907 per share on Monday, June 6, 2016. Honda trades as and ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the /$ spot exchange rate was 107.57/$1.00. If Honda ADRs were trading at $31, what could you do to earn a trading profit? A wise investor might sell short the relatively overvalued ADRs. A wise investor might sell short the relatively under-valuated ADRS. O A wise investor might buy long the relatively overvalued ADRs. O A wise investor might buy the ADRs since they are fairly priced