Question 7 of 62

Market Making
Market Making · Spread
Easy

Uninformed Spread Profit, Second Instance

True fair value is 100. A market maker quotes 99.80/100.20. An uninformed customer is equally likely to buy or sell. Ignoring inventory risk, what is expected maker profit per trade?

Quant interview-style problem · QS-XNF015

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