Arbitrageurs Often Adopt Which of the Following Strategies in a Share

question 72

Multiple Choice

Arbitrageurs often adopt which of the following strategies in a share for share exchange just before or just after a merger announcement?

• A) Buy the target firm's stock
• B) Buy the target firm's stock and sell the acquirer's stock short
• C) Buy the acquirer's stock only
• D) Sell the target's stock short and buy the acquirer's stock
• E) Sell the target stock short

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