以下是引用wzaina在2009-3-5 9:49:00的发言：
LOS f, (Part 2): Calculate the cost tradeoff between buying shares listed abroad and buying ADRs.
Q1. Arbitrage opportunities generally do not exist often because American Depository Receipts (ADRs) trade at:
A) higher prices to the underlying foreign company’s shares and are highly correlated to U.S. markets in rising markets.
B) parity to the underlying foreign company’s shares, except for the additional administrative costs for listing on a U.S. exchange.
C) parity to the underlying foreign company’s shares, except for higher foreign exchange currency costs.
Q2. Belzinger Beer is an international brewery listed on the Paris Stock Exchange and has its American Depository Receipts (ADR) shares that trade on the U.S. NASDAQ. John Toga, CFA, a portfolio manager for the Europa Fund, wishes to purchase shares in Belzinger. The current exchange rate is USD1.15 for one euro. The current price on the Paris Stock Exchange is 34.68 euros, while the ADRs are trading at USD40.00. Brokerage commissions are 0.50% commission in Paris, while commissions in the U.S. are 0.75%. If John wishes to purchase shares in Belzinger at the lowest cost, what exchange should he trade on?
A) U.S. NASDAQ, for a savings of $0.22 per share.
B) Paris, for a savings of $5.15 per share.
C) Paris, for a savings of $0.22 per share.
Q3. Large institutional investors prefer to purchase shares of a foreign company in its local stock market primarily because of:
A) reduced administrative costs and lower foreign exchange currency risks.
B) better execution of prices and reduced trading risks.
C) lower costs and greater liquidity.
发表于 2009-5-25 22:49
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