John is an event driven hedge fund manager, for Bix fund which focuses on merger arbitrage strategies. John has been monitoring the potential acquisition of Mel Inc, by Syd Inc,. Syd Inc is currently trading at $$60$ per share and has offered to buy Mel Inc in a stock for stock deal. Mel ead trading at $$18$ per share just prior to the announcement of the acquisition. The offer ratio is $1$ share of Sydney for $2$ shares of Mel Inc. soon after the announcement Mel inc share price jumps to $$22$ while Syd Inc price drops to $$55$ in anticipation of the merger receiving required approvals and the deal closing successfully.

At the current share prices of $$55$ for Syd Inc and $$22$ for Mel Inc, John attempts to profit from the merger announcement. He buys $40000$ shares of Mel and sells short $20000$ shares of Syd Inc.

Calculate the payoffs of the merger arbitrage under the following $2$ scenarios

$1)$ The merger is successfully completed

$2)$ the$$merger$$fails