The ADR of a British firm is convertible into 3 shares of stock. The share price of the firm was 30 pounds when the British market closed. When the U.S. market opens, the pound is worth $1.63. The price of this ADR should be $____.

Question

Quizplus · Accepted Answer

The ADR is convertible into 3 shares of stock, and each share is priced at 30 pounds. With the pound valued at $1.63, the calculation for the ADR price is 3 shares * 30 pounds/share * $1.63/pound = $146.70.

The ADR of a British Firm Is Convertible into 3