Monday, April 9, 2012

Quant Interview: High Frequency

1. What is CAPM?

2. If I have a portfolio of long option that are Delta hedged, what daily P&L can be expected?

3. If on average the probability of seeing one car passing by per hour is $\kappa$, what is the probability of seeing one car passing by within 15 minutes?
Ans: $1-(1- \kappa)^{1/4}$

4. How many integers fulfill all 3 criteria below:
  • 3-digited
  • Odd
  • Does not contain any '5' in any place

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