Question 1 of 62

Market Making
Market Making · Spread
Easy

Uninformed Spread Profit

The true fair value of an asset is 100. A market maker quotes 99 bid and 101 ask. An uninformed trader is equally likely to buy at the ask or sell at the bid. Ignoring inventory risk, what is the market maker's expected profit per trade?

Quant interview-style problem · QS-T002

Think first. Use hints deliberately. Study the reasoning only when you need it.