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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Definitions:

Levator Scapulae

A skeletal muscle located in the back and side of the neck that elevates the scapula.

Phrenic Nerve

A nerve that originates in the neck (C3-C5) and passes down between the lung and heart to reach the diaphragm, crucial for breathing.

Elevates Scapula

The action performed by certain muscles, such as the levator scapulae, to raise the shoulder blade.

Rotates Scapula

Referring to the action performed by certain muscles which move the shoulder blade in a rotational manner.