Question: Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60

Consider a Kyle (1985) model set-up in which the true value of the stock is $100.00, the unconditional variance of the true value is 60 and the variance of uninformed trading is 10,000.If the value of the stock is $80.00 without private information, the insider's equilibrium expected profit is:

Select one:

a.$774.60

b.$0.00

c.$387.30

d.$64,549.72

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