MedRisk Interview Questions and Answers

The best way to protect holdings from falling prices is through diversification and hedging strategies.

• Diversify the portfolio by investing in different asset classes, sectors, and regions.

• Use hedging strategies such as buying put options or short selling to offset potential losses.

• Regularly monitor the market and stay updated on relevant news and events.

• Implement stop-loss orders to automatically sell holdings if prices reach a predetermined level.

• Consider investing in defen...read more

Selling near same quantity out of the money call of a share involves selling call options with a strike price higher than the current market price.

• Out of the money call options have a strike price higher than the current market price.

• Selling these options allows the seller to collect premium upfront.

• The seller believes that the share price will not rise above the strike price before the option expires.

• This strategy can be used to generate income or hedge against potential los...read more

Strange and Straddle are option trading strategies used to profit from volatility in the market.

• Strange strategy involves buying a call and put option with the same strike price and expiration date, but with different premiums.

• Straddle strategy involves buying a call and put option with the same strike price and expiration date.

• Both strategies are used to profit from volatility in the market, but the Strange strategy requires a larger price movement to be profitable.

• These str...read more

The approximate annual return in NCD varies depending on the issuer and the market conditions.

• The annual return in NCD can range from 7% to 10% depending on the issuer and the market conditions.

• The return is fixed and paid out annually or semi-annually.

• Investors should carefully evaluate the credit rating of the issuer before investing in NCDs.

• Some examples of NCD issuers in India are HDFC, Shriram Transport Finance, and Tata Capital.

Options strategy refers to the use of various options contracts to achieve specific investment goals.

• Options strategies involve buying and selling options contracts to take advantage of market conditions.

• Common options strategies include covered calls, protective puts, and straddles.

• These strategies can be used to generate income, hedge against risk, or speculate on market movements.

• For example, a covered call strategy involves selling a call option on a stock you already own...read more