Medium · Market Making & Trading Games · Numerical · ~5 min · #21
Fair Value of the Higher Die
Real interview · Jane Street
An interviewer asks you to make a market on the maximum of two fair six-sided dice. What is the fair value (expected value) you should centre your quote on?
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Worked solution
Give the problem an honest attempt first, then reveal the full explanation.
Reported in interviews
- Jane StreetGlassdoor interview question
Candidate-reported and unverified; the firm may phrase it differently or no longer ask it. The wording here is our own paraphrase, and the solution was written and checked independently of any answers posted at the source.
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Concepts
Order statisticsDistribution of the maximum
Relevant for
Quant TraderQuant ResearcherDesk Quant