Digital option struck at 26.76. Payoff is either 1 or nothing.
Given that, Tick size for this price is 0.25.
How would you set up a Call Spread?
On expiry date, at the money,
26.75/26.76 would require 100x leverage for risk manager (buy at 26.75 and sell at 26.76) while trader only need 4x leverage (buy at 26.75 and sell at 27.00).
Does 26.75/27.00 even make sense?
(26.50/26.76 would require about 2x leverage.)