Focus Energy Derivatives Trader Interview Questions and Answers

Mainly maths questions and market related

Q1. What is call and put option
Ans. 
Call and put options are financial contracts that give the holder the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a specified price within a specified time period.
• Call option: gives the holder the right to buy the underlying asset at a specified price within a specified time period.

• Put option: gives the holder the right to sell the underlying asset at a specified price within a spe...read more
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Q2. Different options strategies like strangle and ratio
Ans. 
Options strategies like strangle and ratio involve buying or selling multiple options to profit from market movements.
• Strangle involves buying both a call and put option with different strike prices but the same expiration date.

• Ratio involves buying or selling a different number of options to create a specific risk/reward profile.

• Both strategies can be used to profit from volatility in the underlying asset.

• Strangle can...read more
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