A share of the ADR of an Australian firm represents one share of that firm\'s st

Question

A share of the ADR of an Australian firm represents one share of that firm's stock that is traded on the Australian stock exchange. The share price of the firm was 15 A$ when the Australian market closed. As the U.S. market opens, the A$ is worth US$0.76. The price of the ADR should be: ?none of the options listed A$16.50 US?$16.50 US$15.79 US$9.12
A share of the ADR of an Australian firm represents one share of that firm's stock that is traded on the Australian stock exchange. The share price of the firm was 15 A$ when the Australian market closed. As the U.S. market opens, the A$ is worth US$0.76. The price of the ADR should be: ?none of the options listed A$16.50 US?$16.50 US$15.79 US$9.12
A share of the ADR of an Australian firm represents one share of that firm's stock that is traded on the Australian stock exchange. The share price of the firm was 15 A$ when the Australian market closed. As the U.S. market opens, the A$ is worth US$0.76. The price of the ADR should be: ?none of the options listed A$16.50 US?$16.50 US$15.79 US$9.12

Explanation / Answer

Ans is A ?none of the options listed

Explanation: 1 share of ADR = 1 share of firms stock

Share price of the firm = 15 A$ or 15 x 0.76 = $11.4

So price of ADR should be either 15A$ or US$11.4

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