Determine the arbitrage opportunity


Question: Company A has just offered one share of its stock which sells for 50 dollar & 30 dollar in cash for each share of Company B which sells for 60 dollar.  There is no risk to the transaction not going though and time value of money is not a factor. Determine the arbitrage opportunity? What would you do as an arbitrager and when would you stop doing it?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine the arbitrage opportunity
Reference No:- TGS017824

Expected delivery within 24 Hours