Q1: What is the Black-Scholes model? The Black-Scholes model, also known as the Black-Scholes-Merton model, is a mathematical formula used to calculate the theoretical price of European-style options. It was developed by economists Fischer Black and Myron Scholes in collaboration with mathematician Robert Merton in 1973. This model is one of the most well-known and …
30 Time Series Analysis Interview Q&A Q1) What is time series analysis? Time series analysis comprises methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data. Time series analysis is used to identify patterns and trends in historical data to help make informed decisions about investments, trading …
Mortgage Backed Securities:Most Asked Interview Questions and Answers Q1) What are the key attributes that define Mortgages? There are a number of key attributes that define the Mortgages: Loan Size Loan term Lien status Credit classification (Credit Scores, LTV, Income Ratios, Documentations) Interest rate type Amortization type Credit guarantees Prepayments and prepayment penalties Q2) What …
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50 Most Asked Interview Questions and Answers Q1) Define Value at Risk (VaR)? Value at risk (VaR) is defined as the extent of possible financial losses within a firm, portfolio, or position over a specific time frame against a given confidence interval. Risk managers use VaR to understand and control the level of risk exposure …
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