Quant, Math & Computer Science Puzzles for Interview Preparation & Brain Teasing
A collection of ~225 Puzzles with Solutions (classified by difficulty and topic)
Mar 27, 2013
World Series Puzzle
Source: Discussion with Ashwin Rao (http://zlemma.com, Ex-MD Morgan Stanley) and Gaurav Kumar (Credit Suisse IB, Ex-MS, GS, IITB CSE 2006, Booth 2012)
Suppose teams A and B play in the world series of up to 7 games in which the first team to win 4 games wins the series and then no more games are played. Suppose that you want to bet on each individual game in such a way that when the series ends you will be ahead by exactly $100 if your team wins the series, or behind by exactly $100 if your team loses the series, no matter how many games it takes. How much would you bet on the first game?
Update (22 June 2014):
Solution posted by Alex, JDGM, Arnab in comments!