Market Making
Fair Value
Medium
Buying a Coin-Flip Asset
An asset pays or , each with probability . A dealer buys one unit at . What is the expected P&L?
Quant interview-style problem · QS-MM-013
Question 20 of 62
An asset pays or , each with probability . A dealer buys one unit at . What is the expected P&L?
Think first. Use hints deliberately. Study the reasoning only when you need it.