Axxela Advisory Services LLP Analyst Interview Questions and Answers

Q1. Explain CDS and credit risk
Ans. 
CDS stands for Credit Default Swap, a financial derivative used to transfer credit risk between parties.
• CDS is a type of insurance contract where one party pays a premium to another party in exchange for protection against a credit event, such as default or bankruptcy.

• The buyer of a CDS makes periodic payments to the seller, who agrees to compensate the buyer in the event of a credit event on a specified reference asse...read more
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Q2. Explain option strategies
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Options strategies involve buying and selling options contracts to achieve specific investment goals.
• Buy Call Option: Bullish strategy where investor expects the price of the underlying asset to rise.

• Buy Put Option: Bearish strategy where investor expects the price of the underlying asset to fall.

• Covered Call: Selling a call option while holding the underlying asset to generate income.

• Straddle: Buying both a call and p...read more
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Q1. Questions regarding previous work experience
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Q1. Explain different option strategies
Ans. 
Options strategies involve buying or selling options contracts to achieve specific investment goals.
• Some common options strategies include covered calls, protective puts, straddles, and iron condors.

• Covered calls involve selling call options on a stock you own to generate income.

• Protective puts involve buying put options to protect against a decline in the value of a stock.

• Straddles involve buying both a call and a put...read more
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It was easy test but it is difficult to solve this much aptitude in that time limit.

Q1. They ask dbms, sql, puzzles, questions like if you have to open a icecream parlour how should you open it. And general stuff .
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Q1. How do you stay current with ESG trends and regulations？
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Q2. What do you consider your greatest strengths?
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Simple quant questions

Q1. Tell me about yourself
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Q2. Why we should Hire u
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I have a strong analytical background, excellent problem-solving skills, and a proven track record of delivering high-quality insights.
• Extensive experience in data analysis and interpretation

• Strong critical thinking and problem-solving skills

• Proven track record of delivering actionable insights

• Ability to work well under pressure and meet deadlines

• Excellent communication and presentation skills
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Q1. Valuation method
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Q2. Valuation techinque
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Q3. Explain dcf method
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DCF method stands for discounted cash flow method, a valuation method used to estimate the value of an investment based on its expected future cash flows.
• DCF method involves forecasting future cash flows of an investment, discounting them back to present value using a discount rate, and summing them up to get the total value.

• It takes into account the time value of money, as cash received in the future is worth less tha...read more
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