A major acquisition has just been announced, targeting company B. The bid from Company A is an exchange offer with a ratio of 2. Just after the announcement,the prices of A and B are $50 and $90, respectively. A hedge fund takes a long position in company B hedged with A's stock. After the acquisition goes through,the prices move to $120 and $60. For each share of B, the gain is
　　A. $30
　　B. $20
　　C. $10
　　D. $0 since the acquisition is successful
　　Answer:C
　　This position is long one share of company B offset by a short position in two shares of company A. The payoff is ($120-$90)-2($60-$50) =$30-$20=$10.