Today at 10AM, Apple and Microsoft announced a merger agreement. The merger was expected to be completed by the same date next year. If the merger is completed, then each share of Microsoft can be swapped for a cash payment of $11 and 3.5 shares of Apple .

Today at 6PM, shares of Apple closed at $16, whereas shares of Microsoft closed at $60.

Assuming that interest rates are 0%, is there a risk arbitrage opportunity from the announcement of the merger agreement?

If yes, please include the below to the explanation

1) the stock and the amount of shares that you buy

2) the stock and the amount of shares that you are short-selling

3) the cash-flows arising from the risk arbitrage opportunity

If no, why?