On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥3,945 per share on Thursday, April 11, 2013.  Honda trades as and ADR on the NYSE.  One underlying Honda share equals one ADR.  On April 11, 2013, the ¥/$ spot exchange rate was ¥99.8270/$1.00.  

a.  At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?

b.  By comparison, Honda ADRs traded at $39.97.  Do you think an arbitrage opportunity exists?