a) Describe and explain the optimal trading strategy of the informed trader in the Kyle (1985) model. Limit your response to 200 words. You may reference the mathematical expression for the informed traders trading demand to assist you in your response.

b)Describe and explain the equilibrium pricing strategy of the dealers in the Kyle (1985) model. Limit your response to 200 words. You may reference the mathematical expression for the dealerss equilibrium price to assist you in your response.

c)Explain adverse selection and how it relates to the Kyle (1985) model. Give a hypothetical example of adverse selection in an equity market. Limit your response to 200 words