In the context of hedge fund strategies, Event-Driven funds are known for taking advantage of specific corporate events such as mergers, acquisitions, or reorganizations. Consider a hedge fund that has recently invested in a company that is the target of a merger. This merger is highly publicized and expected to conclude in the next quarter. However, an unexpected regulatory hurdle has emerged, potentially delaying the approval of the merger. Given this scenario, which of the following strategies would the hedge fund most likely implement to manage its exposure and maximize returns?