I have a general understanding of how mergers and acquisitions work for symbols being traded in long positions. However, I am confused about how these events are calculated when shorts positions are involved.
Let's say symbol ABC is merging with XYZ. Merger ratio is 1:2 (1 of ABC for 2 of XYZ)
If I am long 10 ABC and long 20 XYZ, after the merger I would be long 20 on ABC.
What happens if I am...
short on ABC and long on XYZ?
long on ABC and short on XYZ?
short on ABC and short on XYZ?
flat on ABC and short on XYZ?