Assistant Trader Interview Questions

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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?
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Assistant Trader

Interviewed at Susquehanna International Group

3.8
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?

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