medium · Market Microstructure spread-econ
A market maker provides liquidity to a seller at a bid price of 25.00 when the midpoint is 25.05.
If the temporary impact of this sell order fully decays and the midpoint reverts to 25.03 shortly after, what is the market maker's realized profit per share on this trade?
- $0.03
- $0.05
- $0.02
- $0.08
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