medium · Market Microstructure adverse-selection
A PIN model estimation yields α = 0.30 (probability of information event), μ = 400 (informed arrival rate), ε_b = 600 (uninformed buy rate), and ε_s = 600 (uninformed sell rate).
What is the Probability of Informed Trading (PIN)?
- 0.167
- 0.100
- 0.091
- 0.200
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