Question

Some companies​ cross-list their​ shares, meaning that their stock trades on more than one stock exchange. for​ example, blackberry​ limited, the maker of blackberry mobile​ devices, trades on both the toronto stock exchange and nasdaq. if its price in toronto is 4646 canadian dollars per share and anyone can exchange canadian dollars for u.s. dollars at the rate of us$ 0.85us$0.85 per c$ 1.00c$1.00​, what must​ bbry's price be on​ nasdaq?

Answer 1

To determine BlackBerry Limited's stock price on NASDAQ, multiply the Toronto price of C$46 by the exchange rate of US$0.85 per C$1.00, resulting in a price of US$39.10.

Step-by-step explanation:

To calculate the equivalent stock price for BlackBerry Limited on NASDAQ, we first determine the price in Canadian dollars and then convert it into U.S. dollars using the given exchange rate.

The price in Toronto is C$46. If we have an exchange rate of US$0.85 per C$1.00, we multiply the Toronto stock price by the exchange rate to get the price on NASDAQ:

• Price on NASDAQ = Price in Toronto * Exchange Rate
• Price on NASDAQ = C$46 * US$0.85/C$1.00
• Price on NASDAQ = US$39.10

Therefore, the price of BlackBerry Limited on NASDAQ must be US$39.10.

Answer 2

If we assume that a share on the Canadian Stock Exchange has the same real value as a share on the NASDAQ, we can convert the value of a Canadian share to a US share by simply converting the value of the currencies. We are given that $0.85 USD is equal to one Canadian dollar. Therefore, BBRY’s price on the NASDAQ is 0.85 * 4646 = $3,949.1.