Alibaba recently did a Global Depository Share (GDR) IPO in the Hong Kong market. · The Hong Kong shares closed at HKD 198.40. · The shares trade in the US market at USD 200. · The H

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Alibaba recently did a Global Depository Share (GDR) IPO in the Hong Kong communicate. 

·      The Hong Kong shares closed at HKD 198.40. 

·      The shares occupation in the US communicate at USD 200. 

·      The Hong Kong Dollar occupations at 7.83 HKD/USD. 

1) With that advice, calculate how frequent Alibaba HK Global Depository Shares are required to dissipation one Alibaba American Depository Share (Hint: don’t bestow me a fractional calculate of shares)

2)   Is there an arbitrage opportunity (long/short one vs. the other ?  If so, how can I do it?

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