eClerx Financial Analyst Interview Questions, Process, and Tips

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Types of derivatives include futures, options, swaps, and forwards.

• Futures are contracts to buy or sell an asset at a predetermined price and date.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Swaps involve exchanging cash flows based on different financ...read more

Futures and forward contracts differ in terms of standardization and exchange trading. Futures contracts are generally considered riskier due to their higher liquidity and potential for leverage.

• Futures contracts are standardized and traded on exchanges, while forward contracts are customized and traded over-the-counter.

• Futures contracts have higher liquidity and are more easily tradable compared to forward contracts.

• F...read more

Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.

• Call options give the holder the right to buy the underlying asset at a specified price within a specific time period.

• Put options give the holder the right to sell the underlying asset at a specified price within a specific time period.

• If the price of a stock is going to ...read more

Bullish market is when the stock prices are rising, while bearish market is when the stock prices are falling.

• Bullish market is characterized by optimism and confidence among investors.

• Bearish market is characterized by pessimism and fear among investors.

• Bullish market is associated with high trading volumes and increased demand for stocks.

• Bearish market is associated with low trading volumes and decreased demand for s...read more

A credit default swap is a financial contract that allows an investor to transfer the credit risk of a bond or loan to another party.

• It is a type of derivative instrument

• The buyer of the swap pays a premium to the seller in exchange for protection against default on a particular bond or loan

• If the bond or loan defaults, the seller of the swap pays the buyer the face value of the bond or loan

• Credit default swaps played ...read more

Mathematical and logical reasoning questions for Financial Analyst position.

• 5% of 50 is 2.5

• 50% of 5 is 2.5

• To cut a cake in 8 pieces in 3 cuts, first cut the cake in half horizontally, then cut it in half vertically, and finally make two diagonal cuts from the center to the corners.

• For medical field: NO

• Data points: N/A

• Puzzle question: NO