RDP 8707: Asymmetric Information and Bid-Ask Spreads in the Eurocurrency Markets Equation

1.g( h ) h e h 2 2 h h e t 2 2 dt > h e h 2 2 h t e t 2 2 dt h e h 2 2 e h 2 2 h MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@785B@