Iron Mountain Inc Senior Associate Interview Questions and Answers

Option, future, swap, and bond are financial instruments used in investment and risk management.

• Option: A contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time period.

• Future: A contract to buy or sell an asset at a predetermined price on a future date.

• Swap: An agreement between two parties to exchange cash flows or financial instruments.

• ...read more

Various strategies used in options trading

• Long Call

• Short Call

• Long Put

• Short Put

• Covered Call

• Protective Put

• Straddle

• Strangle

• Butterfly Spread

• Iron Condor

Corporate actions refer to events initiated by a public company that impact its shareholders and securities.

• Dividends - distribution of profits to shareholders

• Stock splits - dividing existing shares into multiple shares

• Mergers and acquisitions - combining two companies into one

• Rights issues - offering existing shareholders the right to buy additional shares at a discounted price

• Bonus issues - issuing free additional sh

Types of security include physical, network, application, and data security.

• Physical security involves measures like locks, security guards, and surveillance cameras to protect physical assets.

• Network security focuses on protecting the organization's network infrastructure from unauthorized access or attacks.

• Application security involves securing software applications from threats like malware, SQL injection, and cross...read more

Types of bonds include corporate bonds, government bonds, municipal bonds, and savings bonds.

• Corporate bonds are issued by corporations to raise capital.

• Government bonds are issued by governments to finance public projects.

• Municipal bonds are issued by local governments to fund infrastructure projects.

• Savings bonds are issued by the government and are considered low-risk investments.

Swaps are financial derivatives where two parties exchange cash flows or other financial instruments.

• Interest rate swaps involve exchanging fixed interest rate payments for floating rate payments.

• Currency swaps involve exchanging cash flows in different currencies.

• Commodity swaps involve exchanging cash flows based on the price of commodities.

• Credit default swaps involve transferring the credit risk of a bond or loan f

Black and Scholes Model inputs include interest rate, stock price, volatility, time to expiration, and dividend yield. IRS stands for Interest Rate Swap and CDS stands for Credit Default Swap.

• Black and Scholes Model inputs: interest rate, stock price, volatility, time to expiration, dividend yield

• IRS (Interest Rate Swap) involves exchanging fixed interest rate payments for floating rate payments

• CDS (Credit Default Swap...read more

Price and yield have an inverse relationship. Binomial tree valuation model is a method to price options using a tree structure.

• Price and yield have an inverse relationship - as price increases, yield decreases.

• Binomial tree valuation model is a method to price options by creating a tree of possible price movements.

• The model calculates option prices at each node of the tree and works backwards to determine the option's...read more

Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time frame.

• Options can be call options (the right to buy) or put options (the right to sell).

• Options have an expiration date and a strike price at which the asset can be bought or sold.

• Options are commonly used for hedging, speculation, and generating income.

• Example: A ...read more

Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and invest in a variety of assets.

• Hedge funds are typically only available to accredited investors due to their complex and risky nature.

• They often use leverage and derivatives to amplify returns, but this also increases the risk of losses.

• Hedge funds charge both a management fee (usually 2%) and a performance fee ...read more

Right issue procedure refers to the process by which a company offers existing shareholders the opportunity to purchase additional shares at a discounted price.

• Company announces the right issue, specifying the number of shares offered and the subscription price.

• Existing shareholders are given the option to purchase the additional shares in proportion to their existing holdings.

• Shareholders can either exercise their rig...read more

Bonus issue procedure involves issuing additional shares to existing shareholders at no cost.

• Bonus issue is a way for companies to reward shareholders without affecting their cash reserves.

• Shareholders receive additional shares in proportion to their existing holdings.

• The procedure involves approval from the board of directors and shareholders.

• Companies may issue bonus shares to increase liquidity or improve market per...read more

I am a dedicated and hardworking individual with a passion for learning and growth.

• Education background

• Work experience

• Skills and strengths

• Career goals

Reconciliation is the act of restoring harmony or resolving conflicts between individuals or groups.

• Reconciliation involves acknowledging past wrongs and working towards forgiveness and understanding.

• It often requires open communication, empathy, and a willingness to compromise.

• Examples include reconciling with a friend after a disagreement, or countries seeking reconciliation after a war.

• Reconciliation can also refer ...read more

When trading in equity stock market, I check various factors such as company financials, market trends, news, and technical analysis.

• Company financials - revenue, profit margins, debt levels

• Market trends - overall market direction, sector performance

• News - company announcements, industry news

• Technical analysis - price movements, volume trends

Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time period.

• Options can be used for speculation, hedging, or generating income.

• There are two types of options: call options (which give the holder the right to buy an asset) and put options (which give the holder the right to sell an asset).

• Options have an expiration da...read more