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Consider a prediction market with a LMSR market maker with two outcomes, so that C ( y ) = l n ( e y 0

Consider a prediction market with a LMSR market maker with two outcomes, so that
C(y)=ln(ey0+ey1)
Recall that after the conclusion of this market traders will receive a payment of $1 for each share of
the security they own for the outcome that occurs.
What is the cost for a trader that wants to buy one share of both securities (that is a trader who wants
to simultaneously purchase one share of security 0 and one share of security 1)? How does your answer
compare to the trader's expected utility for owning the two shares?
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