Firm A is likely to be the target in a takeover attempt by Firm B. The stock
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Firm A is likely to be the target in a takeover attempt by Firm B. The stock price is likely to rise over the next few weeks as the takeover progresses, but if it fails, the stock price of A is likely to fall even more than the rise. What option strategy might exploit this information?
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In such a case since the resulting payoffs on the upside an...View the full answer
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