Hitting Probability of Brownian Motion - Quant Trader Interview Question
Difficulty: Easy
Category: Market Microstructure
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: probability, brownian-motion, martingale, symmetry
Problem Description
A stock's price follows a standard Brownian motion starting at 0. What is the probability that the stock price hits a level of 1 before it hits a level of -1?
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