Jane StreetTraderAssistant TraderQuestion #195
A company has a value V uniformly distributed between 0 and 1. You are planning to place a bid B for the company. If B is less than V, your bid loses and you get nothing. If B is greater than or equal to V, you purchase the company at price B, and the company ends up being worth 1.5 × V. What bid B should you place to maximize your expected profit?
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