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The hedging game in a quant trading interview is a live market-making exercise, and Optiver, SIG, IMC and Jane Street all run a version of it. You quote a bid and an ask on an uncertain number, usually the sum of hidden cards or dice, and the interviewer trades against you while revealing information and offering side bets and options. The grading is on process: do your quotes track fair value, and do you manage the position you end up with?
This game plays that round end to end on the sum of four hidden cards. You quote an 8-wide market, then work through a board of bets, a hedge offer and a falling-price auction on an option as the cards flip. Because the card odds are exact, the results screen scores your decisions separately from luck.
A live market-making exercise. You quote a bid and an ask on an uncertain number, the interviewer trades against you, then reveals information while offering side bets or options. You are judged on how close your quotes sit to fair value, how you manage your position and whether you price each offer correctly.
Optiver, SIG, IMC and Jane Street trading interviews all run versions of make-a-market games on cards or dice, with re-quotes and side offers along the way. This game is an original drill in that style, not a copy of any one firm's round.
You score for quotes centred on fair value and for taking offers priced in your favour while passing the rest. Ending with a big open position costs some points, and P&L counts for a smaller share because one hand is mostly luck. A hand with no quotes and no offers taken is not scored.
Only expected value. Each card averages 7, so the fair value of the total is the sum you can see plus 7 for each card still face down. The page explains how the bets, calls and puts pay off, and every price in the hand can be checked exactly.