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Suppose a dealer knows that the rate of arrival of buy orders per hour is given by 100 - 4*P, and the rate of arrival
Suppose a dealer knows that the rate of arrival of buy orders per hour is given by 100 - 4*P, and the rate of arrival of sell orders per hour is given by 4*P, where P is the price set by dealer for selling/buying units of stock. how should the dealer set ask and bid prices to maximise his rate of profit ?
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