In an M&A transaction, on what basis is the premium paid to target shareholders typically calculated?

In an M&A transaction, on what basis is the premium paid to target shareholders typically calculated?

In an M&A transaction, on what basis is the premium paid to target shareholders typically calculated? 






A) The target's share price on the day after deal announcement
B) The target's share price on the day prior to deal announcement
C) The target's share price on the day of deal officially closing
D) The target's share price for 30 day period following deal announcement











Answer: B