Derivatives Analyst Interview Questions

662 derivatives analyst interview questions shared by candidates

Black scholes model? Limits of the model, how do we determine implied volatility? What is a swap? How do you determine the fixed rate of a swap? Greeks? Put-call parity? What is a call? What is a put? What is a future? What is the value of a swap at initiation? What is interpolation? Log normal distribution? If correlation between interest rate and future price is positive, what is more expensive a future or a forward price? What is a vanila option? How do you replicate a binary option? Differences between futures and forwards? Types of binary options If the spot price is 200, the cont. Interest rate 5% and expiration is in 1 year, what is the price of the future? Montecarlo simulations What is VaR? Credit VaR? What would you do if your BS model gives you a call value of Y and the market value of the option is X?
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Derivative Analyst

Interviewed at FINCAD

3.9
Feb 25, 2017

Black scholes model? Limits of the model, how do we determine implied volatility? What is a swap? How do you determine the fixed rate of a swap? Greeks? Put-call parity? What is a call? What is a put? What is a future? What is the value of a swap at initiation? What is interpolation? Log normal distribution? If correlation between interest rate and future price is positive, what is more expensive a future or a forward price? What is a vanila option? How do you replicate a binary option? Differences between futures and forwards? Types of binary options If the spot price is 200, the cont. Interest rate 5% and expiration is in 1 year, what is the price of the future? Montecarlo simulations What is VaR? Credit VaR? What would you do if your BS model gives you a call value of Y and the market value of the option is X?

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