In the Frankfurt market,Aldi stock closed at €5 per share.On the same day,the euro U.S.dollar spot exchange rate was €.625/$1.00.Aldi trades as an ADR in the OTC market in the United States.Five underlying Aldi shares are packaged into one ADR.The no-arbitrage U.S.price of one ADR is
A) €25.00.
B) $15.625.
C) $40.
D) none of the options
Correct Answer:
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