hard · Market Microstructure
Calculate the Probability of Informed Trading (PIN) given the following daily parameters: probability of an information event α = 0.3, probability of bad news δ = 0.5, informed arrival rate μ = 400, and uninformed arrival rates ε_b = 600 and ε_s = 600.
- 0.1667
- 0.0909
- 0.2000
- 0.1000
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