• Interview Questions: Capital Market – 3

    1. What are different types of risks involved in Derivatives or Investment?
      • What is Market Risk?
      • What is Credit Risk? How to mitigate/eliminate Credit risk?
      • What is default risk?
      • What is Liquidity Risk
    2. How Credit risk is eliminated by using Collaterals?
    3. What are European, American Options? How these are used?
      • What are Call and Put Options?
      • What is bull spread, bear spread, Box spread, Straddle
      • What is gamma and theta?
    4. What is CDS and MBS?
      • How did they play role in last financial crisis in 2008?

     

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