On the Milan bourse, Fiat Chrysler stock recently traded at €13.82 per share. Fiat Chrysler also trades as an ADR on the NYSE. One underlying Fiat Chrysler share equals one ADR. If the $/€ spot exchange rate was $1.12/EUR1.00, what is the no-arbitrage U.S. dollar price of one ADR?
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- On the Tokyo Stock Exchange, Honda Mo tor Company stock closed at ¥3,945 per share on Thursday, April 11, 2013. Honda t rades as and ADR on the NYSE. One und erlying Honda share equals one ADR. On April 11, 2013, the ¥/$ spot exchange rate was ¥99.8270/$1.00. a. At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR? b. By comparison, Hon da ADRS traded at $39.97. Do you think a n arbitrage opportunity exists?On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥2,916 per share on Monday, June 6, 2016. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the ¥/$ exchange rate was ¥107.66/$1.00. (Round your answer to 2 decimal places.) At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR? No-arbitrage priceIn each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at 102.6 euros (€) when the exchange rate is 1.0823US$/€ (i.e., each euro is worth $1.0823). b. A Swiss stock priced at 93.1 Swiss francs (Sf) when the exchange rate is 1.0488US$/Sf. c. A Japanese stock priced at 1,363 yen (¥) when the exchange rate is 105.8362\/US$. a. The Belgian stock priced in U.S. dollars is $ (Round to the nearest cent.) ...
- In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$). a. A Belgian stock priced at 103.1 euros when the exchange rate is 1.0787 US$/ (i.e., each euro is worth $1.0787). b. A Swiss stock priced at 92.5 Swiss francs (Sf) when the exchange rate is 1.0385 US$/Sf. c. A Japanese stock priced at 1,386 yen (¥) when the exchange rate is113.9988 ¥/US$. Question content area bottom Part 1 a. The Belgian stock priced in U.S. dollars is $111.14 (Round to the nearest cent b. The Swiss stock priced in U.S. dollars is $................ (Round to the nearest cent.) c. The Japanese stock priced in U.S. dollars is $.......... (Round to the nearest cent.)Suppose that a French firm would like to have its stock available through an American Depository Receipt (ADR). If the firm’s stock is currently selling for €75 and that the exchange rate between the € and the $ is €1.0=$1.0592. What price should we expect for the ADR in US dollars? Suppose that over the next year the dollar reaches parity with the Euro, i.e., $1.00=€1.00 and that the price of the French firm’s stock rises to €100. What would expect the price of the ADR to be?A stock price is worth CHF 229 on 01.01.2022 and CHF 152 on 01.01.2023. The exchange rate between CHF and $ is 1.0575 CHF/$ and the exchange rate between CHF and british pounds (GPB) is 0.972 CHF/GPB. a) If the price growth rate was the same in 2021 as in 2022, what was the price, in CHF, on 01.01.2021? (Round your answer to 2 digits after the decimal point if needed)
- A Katz Corporation subsidiary buys marketable equity securities and inventory on April 1, 2024, for 100,000 won each. It pays for both items on June 1, 2024, and they are still on hand at year-end. Inven- tory is carried at cost under the lower-of-cost-or-net realizable rule. Currency exchange rates in 2024 follow: January 1 April 1 June 1 December 31 ...... $0.15 1 won 0.16 = 1 0.17 = 1 0.19 = 1 10. Assume that the won is the subsidiary's functional currency. What balances does a consolidated balance sheet report as of December 31, 2024? a. Marketable equity securities = $16,000 and Inventory = $16,000 b. Marketable equity securities = $17,000 and Inventory = $17,000 c. Marketable equity securities = $19,000 and Inventory = $16,000 d. Marketable equity securities = $19,000 and Inventory = $19,000 11. Assume that the U.S. dollar is the subsidiary's functional currency. What balances does a consoli- dated balance sheet report as of December 31, 2024? a. Marketable equity securities =…Assume that 90-day U.S. securities have a 4.5% annualized interestrate whereas 90-day Swiss securities have a 5% annualized interestrate. In the spot market, 1 U.S. dollar can be exchanged for 1.2Swiss francs. If interest rate parity holds, what is the 90-dayforward rate exchange between U.S. dollars and Swiss francs?(0.8323 $ per SFr or 1.2015 SFr per $)Below are bid -ask data on the German stock index (in local currency), as well as the $/ € exchange rates for 1/31/2007 and 1/31/2008 1/31/2007 1/31/2008 German Stock Index (Bid - Ask) (Bid - Ask ) €350 €360 €300 €310 Exchange Rate 1.28 1.29 $/ € 1.481.49 $/ € Natalie Kay, a dollar - based investor living in Pennsylvania, purchased shares in the German Stock Index on 1/31/2007 and sold them on 1/31/2008 What was Natalie's return on this investment during the year? a. 4.59% b. -1.66% C. - 4.39% d. None of the above.
- A Swiss stock has a monthly risk of 0.01 and the CHF/$ exchange rate has a monthly risk of 0.1. The correlation of these two risks is 0.22. What is the annual risk of a US investment into this stock to three decimal places in decimal terms (eg. 5.1% = .051)Hello, please help with letter a. Thank you 1) ABC Corp has Accounts Receivable of FC 400,000 and Accounts Payable FC 300,000 on both March 31 and April 30, 2010. The applicable exchange rates at that date were as follows: March 30 April 30 Spot rate 1FC = .35 US 1FC = .37 US Forward rate(1 month). 1FC= .36 US. 1FC= .39 US a) What is the FX transaction gain or loss on Accounts REeceivable on April 30, 2010? b) What is the FX transaction gain or loss on Accounts Payable on April 30, 2010? c) If on March 31, ABC wishes to hedge its exposure to changing exchange rates what is the appropriate action it will take. Answer by saying whether ABC will enter a spot contract or forward contract and say whether the contract will involve purchasing FC and selling US dollars, or purchasing US dollards and selling FC and specify the appropriate exchange…0 Two banks give the following quotes on the euro at the same time: Citibank NY $1.2587- 70/€ Barclays London: $1.2549-23/€. The arbitrage profit from these quotes is $/ € (Keep four decimal places.) 0.0038