Question: Correct answer is there. Just need help with the calculations! Thank you! On the London Stock Exchange, Asda Inc. closed at Pounds 30 per share

Correct answer is there. Just need help with the calculations!

Thank you!

On the London Stock Exchange, Asda Inc. closed at Pounds 30 per share on June 3, 2021. Asda also trades as an ADR on the New York Stock Exchange (NYSE) in the U.S. Two underlying Asda domestic shares equal one ADR. On June 3,2021 , the exchange rate was US $1.5/ Pound. 4) What is the no-arbitrage U.S. dollar price of one Asda ADR? Ans: $90 5) If the Asda ADR is instead trading at $80/ADR and you have $8000 of trading capital, how much arbitrage profits can you earn (ignore transactions costs)? Ans: $1000

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