On July 28, 2014, Zillow and Trulia announced a merger between the two companies. Trulia shareholders will receive 0.444 shares of Zillow in exchange for each share of Trulia owned. Zillow traded at $160.32 and Trulia at $65.04.

Suppose you formulated an arbitrage strategy to benefit from the deal.

What would be your arbitrage profit per share of Trulia?

On June 23, 2014, Wisconsin Energy (WE) and Integrys Energy (IE) announced a merger of the two firms. IE shareholders will receive 1.128 shares of WE plus $18.58 in exchange for each share of IE owned. WE traded at $45.27 and IE at $68.35.

Suppose you formulated an arbitrage strategy to benefit from the deal.

What would be your arbitrage profit per share of IE?

Answer rating: 100% (QA)

To determine the arbitrage profit per share of Trulia we need to calculate the potential gain or los... View the full answer