NMD announced a conditional tender offer to acquire all shares of Williams at a fixed exchange ratio of 0.85 in March 2020. The offer is subject to a condition of receiving at least 75% acceptance within 2 months. Acquirer Price at announcement is $11.5. Target closing price at announcement was $9.5. assume dividends for target($0.15/share) and acquirer($0.1/share) and commission costs of $0.06/share. You expect the acquisition will complete in three months with 100% probability.

Identify an arbitrage strategy which can implemented and the announcement state and calculate net arbitrage spread.