erenceinthespreadsofthetwocalloptions writtenonthesamestock withdi erentexercisepricesisproportionaltothedi erenceintheexercisepricestimesatermrelatedtothesignalprecision Since thecalloptionwithalowerexercisepricehasawiderspreadThedi erenceintheexerciseprices servesascompensationfortheOMM’sexpectedlossfromtradingwith...