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1. NoWork's stock at the end of the day is expected to be worth $95(20% probability) or $105 ( 80% probability), pending a news announcement.

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1. NoWork's stock at the end of the day is expected to be worth $95(20% probability) or $105 ( 80% probability), pending a news announcement. A dealer believes that 80% of the traders are noise traders and 20% are informed traders. The dealer is setting her bid price. At what value of the bid price does she just break even? ( 80 points)

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