How do you find the expected time to absorption in a chain with two absorbing states?
You are expected to understand the relationship between volatility, time decay (Theta), and the underlying asset price. A common trick question involves intuitive pricing: "If volatility doubles, does the price of the call option double?" (Answer: No, it increases by roughly $\sqrt2$ due to the square root of time rule in volatility scaling). 150 Most Frequently Asked Questions On Quant Interviews
Stochastic Calculus for Finance I: The Binomial Asset Pricing Model Aggregate of Quant Interview Prep Resources - Reddit How do you find the expected time to
If traffic accidents occur at a rate of per hour, what is the probability of exactly accidents in 2 hours? Stochastic Calculus for Finance I: The Binomial Asset
** Greeks Self-Hedging:** What does it mean if a portfolio is Gamma-neutral but short Vega? How do you hedge it?