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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A portfolio manager overseeing a merger arbitrage fund is evaluating an anticipated acquisition in which Company STZ will trade 1/3 of its stock for each share of Company ACQ. Currently, Company STZ's stock is priced at CNY 30 per share, and Company ACQ's stock is priced at CNY 9 per share. Considering the manager's high confidence in the acquisition's successful completion, which of the following trading strategies would be most appropriate for the manager to pursue to align with this expectation?

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