Random Variables Questions for Options Trading Interviews
A options trading round does not test random variables the way a textbook does. This set is the overlap - the random variables questions that actually turn up in this format.
14 questions, all free to practise. The split is 6 easy, 8 medium.
- Backing out the correlation from portfolio riskEasyRandom VariablesStatisticsView →
- Capped exponential payoutEasyRandom VariablesExpected ValueView →
- First success on an even trialEasyRandom VariablesExpected ValueView →
- Spread of a coin-flip payoffEasyRandom VariablesStatisticsView →
- Variance of a reciprocal uniformEasyRandom VariablesStatisticsView →
- Where the maximum landsEasyRandom VariablesStatisticsView →
- At least two sixes in five rollsMediumProbabilityRandom VariablesView →
- Expectation of −2 ln UMediumRandom VariablesCalculusView →
- Four fives before the first sixMediumProbabilityRandom VariablesView →
- Rare-event Poisson approximationMediumProbabilityRandom VariablesView →
- Two uniforms summing below a halfMediumProbabilityRandom VariablesView →
- Variance of a sum drawn without replacementMediumRandom VariablesView →
- Variance of an aggregate Poisson totalMediumRandom VariablesStochastic ProcessesView →
- When a biased estimator winsMediumRandom VariablesStatisticsView →
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