What Spread Should a Stock Trade At?

Play because in the event that it doesn't actually go through the deal It's like wow, this is the stock could rip on that news. Those are typically the best place to look for as it relates to merger arbitrage. If a stock is likely to trade at the level of the buyout Then it needs to trade at no spread. When you multiply the probability of the loss times Whatever the severity of that loss is the severity is going to be nothing.