Put a number on the inventory skew
You quote a stock with fair value . Random flow has left you long shares. Your desk's inventory penalty is per share, and your target half-spread is \0.03$.
Compute your reservation price and your two-sided quote, and compare it to the symmetric quote you would post while flat.
Show a hint
Reservation price first: . Then place the half-spread on each side of , not of fair.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.