Jane StreetTraderAssistant TraderQuestion #192
Suppose you own a car worth an unknown amount between $0 and $1000. You can make a single bid to buy the car. If your bid exceeds the car's value, you pay your bid and receive the car; if your bid is less than the value, you do not get the car. 1) What should your optimal bid be? 2) If you win, how much do you stand to lose? 3) If you have a mechanic who can increase the value of the car by a constant multiple of the car's current value, what should this constant be to make bidding worthwhile?
Unlock the Full Solution
Enter your email to get the detailed step-by-step solution to this Jane Street interview question, plus access to free interview prep resources.
We'll also send you a free HFT mock interview video.
More Jane Street Trader Questions
A car has a uniformly distributed value between 0 and 1000. If you bid less than this value, you get nothing but keep your bid. If you bid more than this value, you can sell the car for 1.5 times the value. What should you bid? The surface of a 3x3 block is painted. The block is split into 27 cubes and one is dropped on the floor. What is the probability that no visible face is painted? If no visible face is painted, what is the probability that it is the center cube?You flip 4 fair coins and receive $1 for each coin that lands heads. What is the expected value of your total winnings?If you roll two dice, and you have the option to roll again and get paid the highest roll, when is it optimal to reroll?What is 2,000,000 minus 2,022?How many digits does 99 raised to the 99th power have?
Get All 664+ Jane Street Questions with Solutions
Plus 16+ hours of video lectures, resume tailoring, and 1:1 mentorship from quants.
Schedule a Call