Market Making Dice Game Interview Questions
Market making dice game interview questions for quoting fair values on dice outcomes, expected payoffs, and revealed rolls.
Candidates practicing market making with dice outcomes.
Dice games start with enumeration
For a fair die, list the six outcomes and the payoff attached to each. That makes the fair value calculation visible.
Convert expected payoff to quote
After computing expected payoff, quote a bid and ask around it based on uncertainty, inventory, and whether future rolls reveal information.
Concrete example
If a contract pays the die roll in dollars, the fair value of one fair six-sided roll is 3.5 before spread and risk adjustment.
Update after revealed rolls
If rolls are sampled without replacement from a known set, a revealed result can change the remaining distribution.
Watch payoff wording
A market on the roll, the maximum roll, or whether the roll exceeds a threshold all have different fair values.
Common mistakes
Candidates often reuse a dice probability without checking the exact payoff being quoted.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.