It is the morning of January 2. ATR Co has agreed to purchase 100% of 20 million outstanding shares of XAY Inc for a combination of $8.9 in cash and three of its own shares for every XAY share. Immediately after the announcement, the XAY stock is trading at $36.9 per share, while the ATR stock is trading at $10.5 per share. The deal will close on July 2 - which is six months later. You have put together a merger arbitrage strategy where you purchase 8,290 XAY's shares at the current price, hedging out the ATR stock price risk, and hold them till the deal is closed using maximum buying power. Assume that the ATR stock is trading at $12.3 when the deal closes. Your account's beginning equity is $300,000. Margin requirements are 50% on both sides. Ignore any interest, trading commissions, and borrow fees. What will be the ending equity of your account if you set it this trade on January 2 and unwind it on July 2, immediately before the deal closes? $296,114 $304,339 $312,564 $320,790 $329,015 It is the morning of January 2. ATR Co has agreed to purchase 100% of 20 million outstanding shares of XAY Inc for a combination of $8.9 in cash and three of its own shares for every XAY share. Immediately after the announcement, the XAY stock is trading at $36.9 per share, while the ATR stock is trading at $10.5 per share. The deal will close on July 2 - which is six months later. You have put together a merger arbitrage strategy where you purchase 8,290 XAY's shares at the current price, hedging out the ATR stock price risk, and hold them till the deal is closed using maximum buying power. Assume that the ATR stock is trading at $12.3 when the deal closes. Your account's beginning equity is $300,000. Margin requirements are 50% on both sides. Ignore any interest, trading commissions, and borrow fees. What will be the ending equity of your account if you set it this trade on January 2 and unwind it on July 2, immediately before the deal closes? $296,114 $304,339 $312,564 $320,790 $329,015