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a)Describe how price discovery occurs in the Glosten and Milgrom (1985) model. b)How does the Glosten and Milgrom (1985) model differ from the Kyle (1985)

a)Describe how price discovery occurs in the Glosten and Milgrom (1985) model.

b)How does the Glosten and Milgrom (1985) model differ from the Kyle (1985) model?Consider the sequential trading model of Glosten and Milgrom (1985).Let us assume that:

The future value of the asset,

0 = 0.5

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