Fair Value: The Six-Sided Die - Quant Trader Interview Question
Difficulty: Easy
Category: Probability & Statistics
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Topics: probability, expected-value, mean, discrete-variables, basics
Problem Description
You are pricing a simple financial contract. The contract pays out $π, where π is the outcome of a single roll of a fair, six-sided die. To determine the fair price (breakeven point) of this contract without arbitrage, you must calculate the expected value πΈπ.
Calculate the expected value of a single roll of a fair 6-sided die.
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