Summer Trainee Interview Questions

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Suppose you are given the opportunity to bid for a treasure chest, which you know to be priced uniformly anywhere between £0-£1000. If you bid equal to or above the price, you win the treasure chest (at the cost of your bid). If you bid below the price, you do not earn the treasure chest. Now, also suppose you can sell the treasure chest for 1.5 times the price of the treasure chest (should you obtain the chest). What should your bid be?
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Summer Internship

Interviewed at Jane Street

4.4
Apr 27, 2012

Suppose you are given the opportunity to bid for a treasure chest, which you know to be priced uniformly anywhere between £0-£1000. If you bid equal to or above the price, you win the treasure chest (at the cost of your bid). If you bid below the price, you do not earn the treasure chest. Now, also suppose you can sell the treasure chest for 1.5 times the price of the treasure chest (should you obtain the chest). What should your bid be?

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