Question: 3. Consider an auction example with two bidders, where each of whom have the opportunity to bid on some random amount of cash between zero

3. Consider an auction example with two bidders, where each of whom have the opportunity to bid on some random amount of cash between zero and $10, such that E[V] = $5. Each bidder has equal access to information. Suppose that each of the two bidders will obtain a noisy signal, s1 and s2 (0, 10) concerning the value of the bundle of cash such that the mean of the signal amounts equal the value of the bundle: (s1 + s2 )/2 = V. Suppose that Bidder 1s signal is s1 = 7. What is the optimal bid for Bidder 1? Select one: a. $5.50 b. $5.25 c. $6.00 d. $7.00

Given the information below, how much EUR could trader buy for BRL 6,200 if 1GBP was worth 3.1612 BRL?

Sterline Exchange Rate (GBP)
USD	1.5673
EUR	1.2749
AUD	1.4833
CAD	1.5545

1691.56

1,961.28

1856.21

2500.44

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