Question: Consider a Kyle ( 1 9 8 5 ) model where the true value of the stock is $ 3 0 , the unconditional variance

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
1=30,02=3600.
Please use this information to answer the following five questions.
1)The informed traders optimal demand (based on the model) is:
2)The price impact is:
3)The informed trader's ex-ante profit is:
4)If noise trading u=-20. then price p is:
5)Market maker's realized profit is______ and informed trader's realized profit is ______.

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