medium · Market Microstructure adverse-selection
Calculate the Probability of Informed Trading (PIN) for a security where the probability of an information event α is 0.30, the arrival rate of informed traders μ is 400 per day, and the arrival rates of uninformed buyers and sellers are ε_b = 600 and ε_s = 600, respectively.
- 0.120
- 0.200
- 0.091
- 0.075
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