Computation of arbitrage profit

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Computation of arbitrage profit

Company A has just offered 1 share of its stock which sells for $50 and $30 in cash for each share of Company B which sells for $60. There is no risk to the transaction not going though and time value of money is not a factor. What is the arbitrage opportunity? What would you do as an arbitrager and when would you stop doing it?

Reference no: EM1312678

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