You observe the following two pending mergers and you are considering adding them to a merger arbitrage portfolio. (Today's date is October 7^th, 20015). List the trade(s) necessary to invest on the Alcatel (ALU) Nokia (NOK) merger. What is the merger arbitrage spread (rate of return) and approximate annualized spread? List the trade(s) necessary to invest on the Altera (ALTR) Intel (INTC) merger. What is the merger arbitrage spread (rate of return) and approximate annualized spread? Are these trades eventually guaranteed to be profitable? Briefly explain two important things that could happen such that either of these positions will not be profitable. Long-Term Capital management attempted to limit their risk exposure in their $5 billion merger arbitrage portfolio by only selecting deals with certain characteristics. List two of these characteristics and explain exactly why they believed they would reduce their risk