Question
Taiwan Semiconductor trades as an ADR in the United States. The stock trades in Taiwan for 560 Taiwan Dollars. The current spot rate is $1
Taiwan Semiconductor trades as an ADR in the United States. The stock trades in Taiwan for 560 Taiwan Dollars. The current spot rate is $1 = 27.82 Taiwan Dollars.
a) What is todays ADR price?
b) Assume that tomorrow, Taiwan Semiconductors stock price in Taiwan increases to 575 Taiwan Dollars. However, the new spot rate is $1 = 29.24 Taiwan Dollars. What is the new ADR price?
c) In percentage terms, how much did the ADR price change by?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
