Why do the values of ADRs closely track the values of the underlying stock?
A) If there is a discrepancy between the value of ADRs and the values of the underlying stock,arbitragers will quickly cause the values to converge.
B) The only way to value ADRs is in relation to the values of the underlying stock.
C) ADRs have no value except in relation to the underlying stock.
D) Investors will not allow discrepancies between the values of ADRs and the values of underlying stock.
Correct Answer:
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