Commerzbank Interview Question: How to hedge an at-the-money ... | Glassdoor

Interview Question

Trader Interview(Student Candidate) London, England (UK)

How to hedge an at-the-money digital call by vanilla


Interview Answer

2 Answers


Probably the answer is to long an appropriate quantity of bull spreads of a minimum spread possible with puts/options.

Interview Candidate on Mar 12, 2012

I assume that we are sort the digital.. So in order to hedge it, I would go long in a tight call spread..

Anonymous on Mar 27, 2012

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