Assistant Trader Interview Questions

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5 pirates of different ages have a treasure of 100 gold coins. On their ship, they decide to split the coins using this scheme: The oldest pirate proposes how to share the coins, and ALL pirates (including the oldest) vote for or against it. If 50% or more of the pirates vote for it, then the coins will be shared that way. Otherwise, the pirate proposing the scheme will be thrown overboard, and the process is repeated with the pirates that remain. As pirates tend to be a bloodthirsty bunch, if a pirate would get the same number of coins if he voted for or against a proposal, he will vote against so that the pirate who proposed the plan will be thrown overboard. Assuming that all 5 pirates are intelligent, rational, greedy, and do not wish to die, (and are rather good at math for pirates) what will happen?
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Trader

Interviewed at Jane Street

4.4
Jul 17, 2013

5 pirates of different ages have a treasure of 100 gold coins. On their ship, they decide to split the coins using this scheme: The oldest pirate proposes how to share the coins, and ALL pirates (including the oldest) vote for or against it. If 50% or more of the pirates vote for it, then the coins will be shared that way. Otherwise, the pirate proposing the scheme will be thrown overboard, and the process is repeated with the pirates that remain. As pirates tend to be a bloodthirsty bunch, if a pirate would get the same number of coins if he voted for or against a proposal, he will vote against so that the pirate who proposed the plan will be thrown overboard. Assuming that all 5 pirates are intelligent, rational, greedy, and do not wish to die, (and are rather good at math for pirates) what will happen?

There exists a six-sided die. The die is rolled. You are paid $x if the die shows x dots (e.g. if you roll 3, then you are paid $3). What is a fair price for this game? Additional layer: after rolling the die once, you have the option of taking the rolled amount or rolling again. However, if you roll again, then you must take the amount corresponding to the second roll. What is a fair price for this game?
avatar

Assistant Trader

Interviewed at Jane Street

4.4
Mar 9, 2010

There exists a six-sided die. The die is rolled. You are paid $x if the die shows x dots (e.g. if you roll 3, then you are paid $3). What is a fair price for this game? Additional layer: after rolling the die once, you have the option of taking the rolled amount or rolling again. However, if you roll again, then you must take the amount corresponding to the second roll. What is a fair price for this game?

A seller is selling you a car whose value is uniformly distributed between 0 and 1000 but you don’t know the real value and you need to bid for the car. If your bid price is higher than the its real value, the deal will be done at your bid price and you can afterwards resell the car elsewhere for 1.5 times its real value. Otherwise, the deal will not be done. You can only bid once. What will be your optimal bid price?
avatar

Assistant Trader

Interviewed at Jane Street

4.4
Feb 16, 2014

A seller is selling you a car whose value is uniformly distributed between 0 and 1000 but you don’t know the real value and you need to bid for the car. If your bid price is higher than the its real value, the deal will be done at your bid price and you can afterwards resell the car elsewhere for 1.5 times its real value. Otherwise, the deal will not be done. You can only bid once. What will be your optimal bid price?

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