Textbook arbitrage buyout opportunity

If one were to play this the correct way, you would buy up calls in yhoo and puts in msft/buy yhoo sell msft. Most of the time when a takeover bid is announced the target company will rise in price and the company doing the buying will decrease. Intrinsic value of msft is decreased in the short because its value is offset by the purchase price of yahoo. happy trading, people became wealthy today.

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