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Pricing a deal spread · Part 3 of 3
A company agrees to be bought for $50 a share in cash. Its shares trade at $47, and you estimate they would fall to $35 if the deal broke.
You believe the probability of completion is 0.9. What is your expected profit per share from buying at $47?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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