RDP 8707: Asymmetric Information and Bid-Ask Spreads in the Eurocurrency Markets
Equation (3)
A
=
E
(
v
|
η
,
b
)
=
E
(
1
+
|
η
+
ε
|
η
,b
)
=
1
+
η
+
E
(
ε
|
η
,
b
)
≡
1
+
η
+
k
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