You are a buyer who can gain an additional value of 65 if you acquire the asset. The asset value is drawn from a uniform distribution between 0 and 100. This means that each value in this range has the same chance of being selected. The seller knows the value drawn.

(a) What is the probability of acquiring the asset?

(b) What is the (expected) profit for the buyer?

c) What is the (expected) profit for the seller?

(d) What is the optimal bid offer?

(e) What is the profit if the buyer always wants to acquire the asset?

(f) Is the buyer incentivized to offer such a bid?