Goldman Sachs Analyst Interview Questions and Answers

The price of a barrier option is generally less than a normal option.

• Barrier options have a condition that must be met for the option to be activated, which reduces the likelihood of the option being exercised.

• This reduced likelihood of exercise means that barrier options are generally cheaper than normal options.

• However, the price of a barrier option can vary depending on the specific conditions and terms of the ...read more

To create a uniform distribution from 1 to 200 using an unbiased coin, we can use the rejection sampling method.

• Divide the range into equal parts based on the number of outcomes of the coin toss.

• Toss the coin and select the corresponding part of the range.

• If the selected number is outside the desired range, reject it and repeat the process.

• Repeat until a number within the desired range is obtained.

• Example: If the ...read more

Expected number of tosses of a fair coin to get 3 consecutive heads.

• The probability of getting 3 consecutive heads is 1/8

• The expected number of tosses to get 3 consecutive heads is 14

• This can be calculated using the formula E(X) = 2^k + 2^(k-1) + 2^(k-2) + ... + 2^2 + 2^1 + 2^0, where k is the number of consecutive heads required

Go second. The probability of winning is higher when going second.

• The probability of winning when going first is (1/n+1), while the probability of winning when going second is (n/n+1)

• This is because the first player has a chance of drawing the black ball on their turn, while the second player has a chance of drawing the black ball on their turn or the first player's turn

• For example, if there are 10 red balls and 1...read more

Algorithm to find largest common subarray of two arrays of size n

• Create a 2D array to store the lengths of common subarrays

• Traverse both arrays and fill the 2D array with lengths of common subarrays

• Find the maximum length and its corresponding ending index in the 2D array

• Use the ending index to retrieve the largest common subarray from either of the arrays

An LRU cache can be made using a doubly linked list and a hash map.

• Create a doubly linked list to store the cache items.

• Create a hash map to store the key-value pairs.

• When a new item is added, check if the cache is full. If it is, remove the least recently used item from the linked list and hash map.

• When an item is accessed, move it to the front of the linked list.

• When an item is removed, remove it from both the l...read more