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Hard · Betting Games · Quant Trader interview question · market-making, risk-management, probability, mental-math, inventory-management
You are playing a market-making game on the number of prime numbers less than 100. The true value is 25. You open your market with a bid-ask spread of "23 at 27". Another participant lifts your offer and buys from you at 27. You are now short 1 contract. Assuming you are risk-averse and want to reduce your position immediately, and recognizing other market participants are rational, which of the following quotes best balances reducing your short position quickly while minimizing the cost of cov