: How many people do you need in a room before there is a greater than 50% probability that two share the same birthday? Answer : 23. The probability of no match with n people is (365/365)×(364/365)×...×((365−n+1)/365).
: What metrics do you use to measure liquidity? Explain volume, bid-ask spread, order book depth.
(Questions 63–80 cover SVD decomposition, partial derivatives, and convergence of series.) 4. Statistics and Machine Learning
: Explain antithetic variates, control variates, and importance sampling.
You have two coins; one is fair, and one is two-headed. You pick one at random and flip it, getting heads. What is the probability that you picked the two-headed coin? 150 Most Frequently Asked Questions On Quant Interviews
What is the exact frequentist interpretation of a 95% confidence interval for an asset's average daily return? Order Statistics: If you sample
: Reconstruct an order book from L2 data and identify hidden liquidity.
Finding properties that remain constant during operations. Game Theory: Dominant strategies and backward induction.
: Discuss the use of Greeks and other risk metrics to manage a portfolio of equity options. : How many people do you need in
: Incorporate order latency as a parameter for backtesting strategies.
For front-office quant roles, you must know the "Greeks" and the Black-Scholes model. This is where the heavy mathematics comes into play.
people be seated around a circular table if two specific people refuse to sit next to each other? If there are
: How many cards must you draw from a standard deck to have a better-than-even chance of having at least one card from each suit? : What metrics do you use to measure liquidity
: Four people need to cross a bridge at night with one torch. Their crossing times are 1,2,5,10 minutes. The torch must be carried and only two people can cross at a time. What's the minimum total time? Answer : 17 minutes.
How many ways can you move from the bottom-left corner to the top-right corner of an grid if you can only move up and right? Circular Table Seating: In how many ways can
Write out the SDE for an Ornstein-Uhlenbeck process and explain its application in pairs trading. Derivatives Pricing & Black-Scholes
Derive the relationship between a European call and put. The Greeks: What does Delta represent? What about Gamma?