Optiver

Interview Question

Quantitative Trader Interview
Optiver

Roll a die repeatedly until you obtain either a 5 or a 6. If you roll a 5, you cash out the sum of all previous rolls, excluding the 5. If you roll a 6, you receive no payout. You are allowed to cash out mid-game for the sum accrued up to that point. How can you maximize your expected payoff?

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