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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
Recall that after the conclusion of this market traders will receive a payment of $ 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 and one share of security How does your answer
compare to the trader's expected utility for owning the two shares?
Plz do not use AI to solve!
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