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Question
Risk arbitrage to lock in a spread, if the exchange is consummated on the announced terms, involves:a. Buying the shares of the target company and shorting the shares of the bidding company.
b. Buying the shares of the target company and buying an equal number of shares of the bidding company.
c. Buying the shares of the target company and selling short an equal number of shares of the acquiring firm.
d. a and c only.
e. All of the above.
Answer
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