Assume Nestle Is Trading for SF100 in Zurich and Nestle

question 23

Multiple Choice

Assume Nestle is trading for SF100 in Zurich and Nestle ADRs (with 2 ADRs per share) are trading for $40 on the New York Stock Exchange. To prevent arbitrage, what is the relevant US $/SF spot exchange rate?

• A) 0.8
• B) 1.0
• C) 1.25
• D) 4.0
• E) Undetermined

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Definitions:

Analytical Psychology

Jung’s psychodynamic theory, which emphasizes the collective unconscious and archetypes.

Collective Unconscious

A concept in analytical psychology proposing the existence of a segment of the unconscious mind that is shared among beings of the same species, housing archetypes and collective memories.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Gender-schema Theory

A theory that explains how individuals become gendered in society and how sex-linked characteristics are maintained and transmitted to other members of a culture.