SIG (Susquehanna)TraderJunior TraderQuestion #114
Suppose we have a $10 bet. At any time, I can ask to double the bet. If you accept, we both put in another $10, so the winner gets $20. If you lose, you forfeit everything; if you reject the double, you lose the initial $10. What is the minimum probability of winning that would make you accept the double?
Unlock the Full Solution
Enter your email to get the detailed step-by-step solution to this SIG (Susquehanna) interview question, plus access to free interview prep resources.
We'll also send you a free HFT mock interview video.
More SIG (Susquehanna) Trader Questions
If you roll two dice and add their results, what is the probability of obtaining a sum of 6?You are a player on a basketball team that is losing by 2 points. You have the ball, and there are 3 seconds remaining. You have two options: pass to a teammate for a 3-point shot (with a 37% probability of making it and winning the game), or pass for a 2-point shot (with a 77% probability of making it and tying the game). In the event of a tie, your team goes to overtime, where there is a 50% chance of winning. What should you do, and why?A boat fires torpedoes at another boat. The probability that a torpedo hits is 1/3. If a torpedo hits the boat, the boat is destroyed. Two torpedoes are fired. What is the probability that the ship is destroyed?You have 17 coins and I have 16 coins. We flip all the coins at the same time. If you have more heads than I do, you win; if we have the same number of heads or you have fewer, then I win. What is your probability of winning?You roll a die and win twice the value of the face if it is even, or the face value if it is odd. What is the fair amount to charge to play this game? If you are given the option to roll again and will only be paid based on the result of the second roll if you choose to roll again (i.e., the result of the last roll), what is the fair charge to play the game with this option?
Get All 120+ SIG (Susquehanna) Questions with Solutions
Plus 16+ hours of video lectures, resume tailoring, and 1:1 mentorship from quants.
Schedule a Call