Assistant Trader Interview Questions in Dublin, Ireland | Glassdoor

# Assistant Trader Interview Questions in Dublin, Ireland

35

Assistant trader interview questions shared by candidates

## Top Interview Questions

Sort: RelevancePopular Date

Mar 13, 2013
 A piece of land has a 30% chance of being located over an oil reserve, in which case it is going to be worth 100M. If there is no oil, the land is worth 30M. You are offered an option to buy the land at 40M after inspecting it and ascertaining if there is oil. How much are you willing to pay for this option?6 AnswersThis is a very basic options question, of course. Not being too familiar with options, I did not follow that until it was too late and the interviewer had corrected me. They mislead you slightly by first asking you for the fair value of the piece of land and by asking the question in a fairly convoluted way.20 MillionExpected value = 0.3(100m) + 0.7(30m) = 30m + 21m = 51m => option price = 51m - 40m = 11m No?Show More Responsesi think the answer should be 18 million. the payoff of the option is 60m or 0. 60*0.3=18Daneil, Why the payoff of the option is 60m or 0? I think the payoff is either 0 or 10M9million. Your payoff if there is oil (30%) there is 100million - the 40million you soend -X(the amount you paid to check if there was oil). Then if you find no oil you wont buy it but you have already spent X to check. So spending X has a payoff equation: X=.3(100m-X)+.7(-X)

Mar 8, 2011
 How many oranges are consumed per year in Ireland?2 AnswersDoes anybody have an answer for this type of logic question? I think I've heard it being phrased, well not phrased, but asked using 'population of uganda' or 'number of dentists in london' or something similar... Can't figure out how you would go about estimating this really Or is there even an answer? Are they just looking to see how you go about answering it?Its all about your thought process. no one cares about what you get but how you got there. For instance 4million in the republic 25% orange eaters ie 1million. Avg of 3 oranges consumed a week . ie 162 per person per year. 162 million oranges.

Jun 9, 2010
 You are the captain of a submarine. You have two torpedoes. Each torpedo hits a ship independently with probability 1/3. What's the probability you will hit a ship?3 AnswersGenerally you get the probability of both happening by multiplying the prob's. Obviously you aren't looking for the probability of both, but you are looking for the opposite probability of both not hitting. So P(Not) = 1 - 2/3*2/3 = 5/9Alternatively the probability of a union of two independent events is given by P(A U B) = P(A) + P(B) - P(AnB), where I use n to represent the intersect. Here the two events are the 1st torpedo hits and the 2nd torpedo hits, and the union of the two events is that you hit the ship (with one or two torpedoes). So P(hit ship) = P(1st hits U 2nd Hits) = 1/3 + 1/3 - 1/3*1/3 = 6/9 - 1/9 = 5/9It'd be better to clarify with the interviewer when asked this type of questions . If the interviewer means ONE ship, we'd also have to subtract the probability of both hitting, therefore: P(Not) = 1 - 2/3*2/3 - 1/3*1/3= 4/9 Also, both previous answers are the same logic. As ( A + B ) = NOT(NOT( A + B )) = NOT( AxB)

Jun 9, 2010
 You are the captain of that same submarine. You can see a sinking ship on the horizon. What's the probability both of your torpedoes hit the ship?4 AnswersTo calculate this, based on the previous probability of 1- P(no hit) = 5/9, we may update this information into the scenario. Essentially something like a bayes rule, knowing that the ship has definitely sunk, you are looking P (both torpedoes hitting| it has sunk) = 1/3*1/3 divide by 5/9, which equals to 1/5.Wouldn't that simply be 1/3? Seeing as the ship is sinking, you already know it's been hit by a torpedo, and as the probabilities are independent of eachother, P(the other torpedo hits)=1/3, no?no, it's a Bayes rule problem of conditional probability. The rule is : prob of event A given event B has happened = (prob of event B given event A)x(prob of event A)/prob of event B in this case, prob of event B given event A is the prob of the ship sinking given both torpedos have his, which is obviously 100%. probability of event A is the prob of both torpedos hitting, which is (1/3)*(1/3) = 1/9 probability of event A is the prob of ship sinking, which we already have as 5/9. so the probability of both torpedos hitting, given the ship is sinking = (1)*(1/9)/(5/9) = 1/5Show More ResponsesIf you know its sinking, then at least 1 hit. So you know there are 5 possibilities (from previous answer of 5/9) for it to have happened. Only 1 of those can be the one where both hit. So, probability is 1/5.

Mar 8, 2012
 If a shooting star has an 80% chance of appearing in the next hour, what is the chance of it appearing in the next half hour?1 Answer20% chance not appearing in the next hour 44.7% chance not appearing in the next half hour (44.7% * 44.7% = 0.2) so it's 55.3 chance appearing in the next half hour

Jul 22, 2015
 You are sitting in a room and all you have is a phone. Your job is to make markets on populations of world countries but you have no additional resources at your disposal. The phone rings and someone asks for a market on the population of Zambia. What do you do?1 AnswerThis question centres around understanding that you are at an informational disadvantage to the people on the other side of the phone. The person calling you can just look up the population on Google and then when you get it wrong trade with you and when you have it right they won't trade with you. Its a question on knowing what you don't know.

Mar 24, 2015
 I have a painting, if it's an original it's worth 500k if it isn't it's worth 10k. The probability it's an original is 0.2. I have an option to pay 100k for the picture after inspection what is the value of the option?2 AnswersThe payoff of the option is 400k. 400000(0.2) is 80k.Expected value of the painting is 108K (0.2*500,000+0.8*10,000=108,000) but you have to pay 100K for the painting if it's an original, so the option would be worth \$8,000 (I think)

Aug 23, 2012
 Played the game Acey Deucy 1 Answercan you explain the question you were asked and the solution..it has being annoying me since last year!!