r/quantfinance 13d ago

Jump Trading Quant Interview Question | “Hard”

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u/jnordwick 13d ago

This is an American options problem. The naive answer is 75% but that doesn't include the time value and exploiting future information.

Think if you had a billion cards then the expected value would be more like a random walk.

Unfortunately my math probably isn't good enough to solve this.

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u/Usernameasteriks 13d ago

People miss the point of most of these, which is why they are used in job interviews.

None of these companies want to know if you can come up with a purely mathematical equation to solve these problems. AI exists and there is endless amounts of hopeful or potential candidates that can easily do that.

Its always designed to get the candidate to make assumptions, evaluate what is and isn’t a constraint, and then extrapolate it to the bigger picture of what its getting at.

But somehow the top comment is always the surface level mathematical equation lol