### Problem regarding the adr arbitrage

##### Reference no: EM131021162

China Telecom Corp. is simultaneously listed on Hong Kong Stock Exchange (HKSE) and New York Stock Exchange (NYSE). It trades as an ORD on the HKSE and as an ADR on the NYSE. The ordinary share (ORD) price of China Telecom is HKD 4 on HKSE. The spot rate is HKD7.75/USD. The depository bank charges a depository fee of 10 cents per ADR.

(a) Please find the symbol ofChina Telecom Corp on NYSE, the ADR ratio, the ADR program, and the depositary bank.

(b) If the price of the ADR is \$52 on NYSE, is there an arbitrage opportunity? If your answer is yes, how do you design the arbitrage strategy and how much is your profit?

(c) If the price of the ADR is \$51 on NYSE, is there an arbitrage opportunity? If your answer is yes, how do you design the arbitrage strategy and how much is your profit?

#### Located facility instead of several smaller

What trade-offs are involved in deciding to have a single large, centrally located facility instead of several smaller, and dispersed facilities? Who needs to be involved in

#### Calculate the eac for machine

Calculate the EAC for each machine. (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign. Do not roun

#### Specific exception defined in indian contract act

a) In this example, who is the Consumer as per the definition mentioned in Indian Consumer Protection Act, 1986 and under which Section? Can Arpita file a consumer complaint

#### What is the relationship between evidence and proof

What is the relationship between "evidence" and "proof" in this case? What ethical decision rules can be applied in a situation where there is evidence, but no proof - What

#### Person for full insurance against risk

If a person with utility from income is U = Y^0.6 (where Y is income) and an initial income of \$40,000 faces the risk of losing all of her income with a likelihood of three

#### Presentation for academic computing services

The Baypoint Group (TBG) needs your help with a presentation for Academic Computing Services (ACS), a nationwide organization that assists colleges and universities with tec

#### Reliability of the system with redundancy

A system consists of 2 steps. The first has a reliability of 0.94. The second has a reliability of 0.95. You consider the system reliability too low. You decide to add in a