150 Most Frequently Asked Questions On Quant Interviews [patched] -
"150 Most Frequently Asked Questions on Quant Interviews" by Stefanica, Radoičić, and Wang is a comprehensive, third-edition guide tailored for quantitative finance roles, covering topics from mathematics to machine learning. Designed for interview prep, the book offers concise, technical solutions to questions in areas like C++ programming, financial instruments, and brainteasers. Explore the guide and its sample questions on the Financial Engineering Press website Amazon.com
Part 1: The Screening Filter (Brain Teasers & Logic)
These questions test your raw problem-solving ability and how you structure your thoughts under pressure. They often appear in early-round phone screens. 150 Most Frequently Asked Questions On Quant Interviews
Part 2: Probability & Statistics (The Core)
This is the single most important section for most quant roles. You must be able to derive answers quickly and simulate them mentally. "150 Most Frequently Asked Questions on Quant Interviews"
7. Finance & Derivatives (15 questions)
| # | Question | Difficulty | Key Idea | |---|----------|------------|-----------| | 136 | What is the Black-Scholes formula? | ★★ | C = S N(d1) – K e^-rT N(d2) | | 137 | What is a call option? Put option? | ★ | Right to buy/sell | | 138 | What is delta? | ★ | ∂C/∂S | | 139 | What is gamma? | ★ | ∂²C/∂S² | | 140 | What is implied volatility? | ★★ | Vol that makes BS price match market | | 141 | What is the volatility smile? | ★★ | IV varies with strike | | 142 | What is the risk-neutral measure? | ★★★ | Measure where discounted prices are martingales | | 143 | What is a swap? | ★ | Exchange cash flows | | 144 | What is a futures contract? | ★ | Standardized forward | | 145 | What is the difference between hedging and speculation? | ★ | Reduce risk vs seek profit | | 146 | What is value at risk (VaR)? | ★★ | Loss quantile | | 147 | What is the Sharpe ratio? | ★ | (Return – RF)/Volatility | | 148 | What is the Greeks for options? | ★ | Delta, Gamma, Vega, Theta, Rho | | 149 | What is a binomial tree for option pricing? | ★★ | Discrete-time model | | 150 | What is put-call parity? | ★ | C – P = S – K e^-rT | Part 1: The Screening Filter (Brain Teasers &
5. Coding and Algorithms
Even if you are applying for a pure research role, you will be asked to code. Python and C++ are the industry standards.
Common Algorithms:
- Sorting and Searching: "Implement Quicksort or Merge Sort."
- Data Structures: "Reverse a linked list."
- Numerical Methods: "Write a script to approximate $\pi$ using a Monte Carlo simulation."
The Monte Carlo Example: A classic interview task is to write a 5-line script that randomly generates points in a $1\times1$ square and checks if they fall within a quarter circle. The ratio of points inside the circle to total points, multiplied by 4, approximates $\pi$. This tests your ability to translate mathematical concepts into code instantly.
