Trading Interview Questions

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You are playing a game where you flip a coin 5 times. You win if three heads come up in the 5 coin tosses. You lose if three tails come up in the 5 coin tosses. If you win you get £1. If you lose you lose £1. Before each flip you can choose to either double the stakes from their previous value (if you win you get £2n and if you lose you lose £2n where n is the amount you get if you win beforehand) or keep them the same. Are you willing to pay £0.50 to play this game?
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Quant Trading Internship

Interviewed at Jane Street

4.4
Oct 2, 2025

You are playing a game where you flip a coin 5 times. You win if three heads come up in the 5 coin tosses. You lose if three tails come up in the 5 coin tosses. If you win you get £1. If you lose you lose £1. Before each flip you can choose to either double the stakes from their previous value (if you win you get £2n and if you lose you lose £2n where n is the amount you get if you win beforehand) or keep them the same. Are you willing to pay £0.50 to play this game?

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