What Role Do Hedge Funds Take When They Speculate on Merger

Multiple Choice

What role do hedge funds take when they speculate on merger activity by buying stock of firms that are "in play"?

A) Speculation causes an increased chance of antitrust lawsuits.
B) Hedge funds specialize in taking on the risk that the deal will fall through and allow risk-averse investors to cash out.
C) Hedge funds help reduce the cost of the merger to an acquirer.
D) Hedge funds enable international mergers.