Merger Arbitrage in Hedge Fund Strategies

During an investment committee meeting, a hedge fund manager discusses the upcoming merger between two large corporations, TechCo and InnovateInc. The manager believes that the merger will lead to a significant increase in the stock price of TechCo, particularly as the announcement date nears.

The hedge fund usually employs an event-driven strategy focusing on corporate actions such as mergers, acquisitions, and restructurings. The manager outlines three potential strategies related to the merger:

Which of the following strategies best describes the hedge fund's approach to capitalizing on the merger?