Alibaba HK Global Depository Shares
Alibaba recently did a Global Depository Share (GDR) IPO in the Hong Kong market.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
· The Hong Kong shares closed at HKD 198.40.
· The shares trade in the US market at USD 200.
· The Hong Kong Dollar trades at 7.83 HKD/USD.
1) With that information, calculate how many Alibaba HK Global Depository Shares are required to purchase one Alibaba American Depository Share (Hint: don’t give me a fractional number of shares)
2) Is there an arbitrage opportunity (long/short one vs. the other ? If so, how can I do it?