Determine the current exchange rate

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Problem 1: An American Depositary Receipt? (ADR) is security issued by a U.S. bank and traded on a U.S. stock exchange that represents a specific number of shares of a foreign stock. For? example, Nokia Corporation trades as an ADR under the symbol NOK on the NYSE. Each ADR represents one share of Nokia Corporation? stock, which trades under the symbol NOK1V on the Helsinki stock exchange. If the U.S. ADR for Nokia is trading for $7.91 per? share, and Nokia stock is trading on the Helsinki exchange for €6.04 per? share, use the Law of One Price to determine the current $/€ exchange rate.

Reference no: EM132908865

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