Consider a Kyle $(1985)$ model where the true value of the stock is $$30,$ the unconditional variance of the true value is $25,$ the variance of uninformed trading is $3600$ and the unconditional expected value of the stock is $$25,$ i$.$e$.,$ E$[]=25,0(2)/(3)=25$

$=30,0,=3600.$

$1)$The informed trader$$s optimal demand $($based on the model$)$ is:

A$.$

$60$

B$.$

$55$

C$.$

$65$

D$.$

$70$

$2)$The informed trader's ex$-$ante profit is:

A$.$

$180$

B$.$

$200$

C$.$

$150$

D$.$

$120$

$3)$If noise trading u$=-20.$ then price p is:

A$.$

$25\mathrm{.}50$

B$.$

$26\mathrm{.}68$

C$.$

$30\mathrm{.}50$

D$.$

$28\mathrm{.}50$

$4)$Market maker's realized profit is$\_\_\_\_\_\_$ and informed trader's realized profit is $\_\_\_\_\_\_.$

A$.$

$-132\mathrm{.}80$; $199\mathrm{.}20$

B$.$

$-132\mathrm{.}80$; $132\mathrm{.}80$

C$.$

$-199\mathrm{.}20$; $199\mathrm{.}20$

D$.$

$-152\mathrm{.}50$; $165\mathrm{.}50$