PLEASE ANSWER QUESTIONS CORRECTLY AND LABEL THEM AS WELL

ou are running an arbitrage-based hedge fund focusing on merger transactions. Company xrz has fust received a tender offer for s48 per share from the management of cquisiCorp. For the pust two weeks, XYZ's shbres traded at around $35, but immediately after the tender offer the market price of those shares rose to their current level of s44. in the other hand, AcquisiCorp's share price fell from $82 to $78 right atter the announcement of the proposed takeoven. Further, interest rates in the economy have recenty risen om 3.0 percent to 3.5 percent based on renewed fears of inflation. a. Calcilate the market's impled probability that the takeover will ultimately be successful Do not rouind intermeclate calculations. Rouind your answer to two decimal places. b. Explain how you can use this information to decide whether you should take a long position or a short poseion in the stock of Company myz. Round the monetary values to the nearest dollar and percentage value to two decimal places. According to this probability, the deal has a better than percent of being completed in order to jusify purchssing x brz stock for $ hape of selling at the tender effer price of s I if the ceal pals apart, XYZ's shares will return to 5