An American Depository Receipt (ADR)is a Security Issued by a U.S.bank

question 16

Multiple Choice

An American Depository Receipt (ADR) is a security issued by a U.S.bank and traded on a U.S.stock exchange that represents a specific number of shares of a foreign stock.Siemens AG has an ADR that trades on the NYSE and is equivalent to one share of Seimens AG trading on the Frankfurt Stock Exchange in Germany.If Seimens trades for $95.19 on the NYSE and for €64.10 on the Frankfurt Stock Exchange,then under the law of one price,the current exchange rate is closest to:

• A)$0.6744/€
• B)€0.6734/$
• C)€1.4850/$
• D)$1.5274/€

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Definitions:

Marketing Organization

An organized group of individuals working together to plan, execute, and monitor marketing strategies and activities to reach desired consumer segments.

Marketing Tactics

Specific actions, techniques, or strategies used to achieve marketing goals, such as promotions, advertising campaigns, and social media engagement, tailored to target audiences.

Generic Business Strategy

A basic strategy for achieving competitive advantage that can be adopted by any firm, typically categorized into cost leadership, differentiation, and focus strategies.

Competitive Advantage

The attribute that allows an organization to outperform its rivals, gained through offering greater value to consumers or operating more efficiently.