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Firm A is currently trading at $13.50 per share. Firm A announces that it will acquire Firm B at a ratio of .825:1 shares. Firm

Firm A is currently trading at $13.50 per share. Firm A announces that it will acquire Firm B at a ratio of .825:1 shares. Firm B shares rise from 9.25 to 10.93 immediately following the announcement while Firm A's stock price remains unchanged. If a risk arbitrageur thinks that the market it underestimating the probability that the deal will be completed he can short ______ shares of Firm __ and buy ______ shares of Firm __ .

825; A; 1,000; B;

1000; B; 825; A;

1000; A; 825; B;

825; B; 1000; A;

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