Interview

Monte Carlo (Market Risk & Option Pricing)

1.     What is Monte Carlo simulation and how is it used in quantitative finance? The Monte Carlo method is a computational technique used to model and solve financial problems that involve uncertainty and complex dynamics. It is particularly useful in areas where closed-form analytical solutions are difficult or impossible to derive. Monte Carlo simulation is …

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90 Python Interview Questions

  1.     What is Python? What are the benefits of using Python language as a tool in the present scenario? Python is a widely-used general-purpose, object-oriented, and high-level programming language. Python is commonly used for developing websites and software, task automation, data analysis, data visualization and machine learning. The following are the benefits of using …

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Portfolio Theory (22 Q&A)

Q1. What does it mean for an investor to be risk-averse, risk neutral, risk seeking and risk tolerant? Risk-Averse: A risk-averse investor is one who prefers lower-risk investments with relatively stable returns over higher-risk investments with potentially higher returns. They prioritize protecting their capital and are willing to accept lower returns in exchange for reduced risk. …

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Options & Derivatives (Part A: 50 Q&A)

Options and Derivatives 1.    What is an exchange? An exchange, refers to a marketplace or platform where various financial instruments, such as stocks, bonds, commodities, derivatives, and currencies, are traded. It provides a centralized venue where buyers and sellers can come together to execute transactions. Exchanges play a vital role in facilitating the smooth functioning of …

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Black Scholes Option Pricing: Interview Q&A

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 …

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30 Time Series Analysis Interview Q&A​

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 …

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Mortgage Backed Securities: Most Asked Interview Questions and Answers​

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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