About this question
Medium · Betting Games · Quant Trader interview question · probability, market-making, expected-value, risk-management
You make a two-sided market on the event that two fair six-sided dice sum to 7. Your current bid and offer are centered near a probability of $1/6$. Your model now estimates a higher fair probability, and inventory considerations are unchanged. Which quote adjustments are directionally consistent with moving your market toward the higher fair value? Select all that apply.