# Option Position Limit in Investment Bank [closed]

1. What does dollar option position from $$strike \ price \times option \ unit \times multiplier$$ actually infer? Particularly for Digital Option.
2. Do investment banks impose some kind of position limit on their positions?
3. If yes, why should such limit exist, apart from Limit on Greeks and VaR?
4. How does investment bank calculate its position size?

## closed as off-topic by vanguard2k, LocalVolatility, Quantuple, Gordon, SmallChessFeb 17 '17 at 0:23

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• "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – vanguard2k, LocalVolatility, Quantuple, Gordon, SmallChess
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