Question
Which of the following statement is TRUE? Suppose U.S. investors bought Toyota Motor Corp ADR in the U.S. stock exchange at $100 when the stock
Which of the following statement is TRUE? Suppose U.S. investors bought Toyota Motor Corp ADR in the U.S. stock exchange at $100 when the stock price of Toyota Motor Corp is Yen 10,000 in the Tokyo stock exchange. One year later the stock price of Toyota Motor Corp increases to Yen 11,000. During the same one-year period, USD strengthened by 20% against JPY.
Group of answer choices
U.S. investors who trade ADR or cross listed stocks of foreign companies in the U.S. stock exchange do not face currency risk.
U.S. investors bought Toyota Motor Corp ADR in the U.S. stock exchange at $100 gain 10% return.
U.S. investors bought Toyota Motor Corp ADR in the U.S. stock exchange at $100 gain about 30%.
U.S. investors bought Toyota Motor Corp ADR in the U.S. stock exchange at $100 lose about 10%.
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