An informed trader has private information that the value of a stock is $$90$ per share. Without this information, the variance of the expected value of the stock would be $70.$ The variance associated with uninformed investor trades is $10,000$ shares. If the expected value of the stock is $$120.$ Calculate the price that is set by the market maker.

Question $15$Answer

$$110\mathrm{.}0$

$$139\mathrm{.}1$

$$105\mathrm{.}0$

$$192\mathrm{.}1$