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Firm A is currently trading at $13.66 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 $13.66 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. What is the implied probability that the market thinks the deal will go through? (For intermediate steps round to the nearest whole cent)
A. .38
B. .83
C. .46
D. .79
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