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There is a publicly announced merger agreement for ABC Co to buy XYZ Co, paying XYZ shareholders entirely in cash. If a merger arbitrage fund

There is a publicly announced merger agreement for ABC Co to buy XYZ Co, paying XYZ shareholders entirely in cash. If a merger arbitrage fund wants to bet on this merger successfully closing, which of the following trades are they most likely to do?

A.Buy XYZ stock

B.Short ABC stock

C.Buy XYZ stock and short ABC stock

D.Make a competing acquisition offer for XYZ at a higher price

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