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Optiver·Software Engineer·Technical Phone Screen·Intermediate

Intermediate
May 2026

Summary

Optiver software engineering interview with a combinatorics problem that sounds deceptively simple until you actually try to count anything. The core of it was a classic constraint-based sequence counting problem dressed up in trading language.

Questions Asked (1)

Q1

You perform exactly 2n trades starting and ending with 0 shares. Each trade is either buying or selling one share, and your position can never go negative. How many distinct valid sequences exist for a given n, and what's an efficient way to compute it?

Algorithms & Data Structures
Author's notes

This is the Catalan number problem in disguise, which I did eventually recognize, but not before spending a few minutes trying to brute-force small cases and pattern match.

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AI HintsAI Generated

Suggested Approach

Recognize that the problem is equivalent to counting Dyck paths of length 2n, where each buy is an up-step and each sell is a down-step, and the position never goes negative. The answer is the nth Catalan number, which can be computed efficiently using the formula C_n = (2n)!/(n!(n+1)!) or via dynamic programming with O(n^2) time or O(n) time using combinatorial formulas.

Pro tip: Mention that this is a classic problem with applications in many areas, and that the Catalan numbers grow exponentially, so for large n you might need to compute modulo a prime or use arbitrary precision arithmetic. Also, be prepared to discuss the time and space complexity of different computation methods.

1. Model the problem

Map each trade to a step: buying one share is an up-step, selling one share is a down-step. The condition that the position never goes negative means the path never goes below the starting level.

2. Identify the combinatorial structure

The sequences correspond to Dyck paths of length 2n, which are counted by the nth Catalan number. Explain why the bijection holds.

3. Derive the formula

State the closed-form formula: C_n = (2n)!/(n!(n+1)!). Alternatively, mention the recurrence C_0=1, C_{n+1} = sum_{i=0}^n C_i C_{n-i}.

4. Discuss efficient computation

For small n, use the closed-form with factorials. For large n, use dynamic programming with O(n^2) time or compute using the recurrence with O(n) space. If needed, compute modulo a prime using modular inverses.

5. Analyze complexity and edge cases

Mention that the number of sequences grows exponentially, so for large n the result may be huge. Discuss time and space complexity of the chosen method and potential overflow issues.

Key Points to Mention

  • Catalan numbers count Dyck paths, which are sequences of +1 and -1 steps that never go negative and sum to zero.
  • The closed-form formula: C_n = (2n)!/(n!(n+1)!).
  • The recurrence relation: C_0 = 1, C_{n+1} = sum_{i=0}^n C_i C_{n-i}.
  • Efficient computation: O(n^2) dynamic programming or O(n) using factorial precomputation and modular arithmetic.
  • Applications: balanced parentheses, binary trees, monotonic paths, etc.
  • For large n, consider modular arithmetic or arbitrary precision to handle huge numbers.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.