# finance question 83

Question :

: ð¸(ð‘šð‘–ð‘›ð‘¢ð‘¡ð‘’ð‘  ð‘¡ð‘œ ð‘Ÿð‘’ð‘¡ð‘¢ð‘Ÿð‘› ð‘¡ð‘œ ð‘§ð‘’ð‘Ÿð‘œ) = âˆ‘ ð‘ƒð‘Ÿð‘œð‘(ð‘Ÿð‘’ð‘¡ð‘¢ð‘Ÿð‘› ð‘¡ð‘œ ð‘§ð‘’ð‘Ÿð‘œ ð‘Žð‘¡ ð‘¡ð‘–ð‘šð‘’ ð‘¡) Ã— ð‘¡ 6 ð‘¡=1

Also note that the probability of returning to the zero position at ð‘¡ = 6 equals one minus the sum of the probabilities of returning to the zero position at ð‘¡ = 1, ð‘¡ = 3, or ð‘¡ = 5.

b) Suppose that you widen your bid at ð‘¡ = 0 such that the probability of an order arriving to buy 100 shares from you is now 75 percent and the probability of an order arriving to sell 100 shares to you is now 25 percent. Assume that these probabilities will remain the same until you return to the zero position. In expectation, how many minutes does it take to return to the zero position?

see attached “hw3 question 2.png

study doc may help “Week 9 FIN480.pdf” “Algorithmic Trading 1 (Week 9).pdf”. ,,Algorithmic Trading 2 (Week 9).pdf”

due in one week

i need someone 100% sure for the answer

thank you !ðŸ˜Š