Modelama Exports Interview Questions and Answers

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

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

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

• Futures are contracts to buy or sell an asset at a future date for a price agreed upon today.

• Forwards are similar to...read more

Types of swaps include interest rate swaps, currency swaps, and commodity swaps.

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

• Currency swaps involve exchanging principal and interest payments in one currency for another currency.

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

• Other types of swaps include equity swaps, credit default swaps,

Types of options include call options and put options.

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

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

A bull market is a financial market characterized by rising prices and investor optimism.

• Bull markets typically occur when the economy is strong and unemployment is low.

• Investors are confident in the future of the market and are more willing to buy stocks.

• Bull markets can last for months or even years, leading to significant gains for investors.

• Examples of bull markets include the dot-com bubble in the late 1990s and t...read more

A bear market is a financial market characterized by declining prices and investor pessimism.

• Occurs when stock prices fall by 20% or more from recent highs

• Investors are generally pessimistic about the market's future performance

• Can last for months or even years

• Examples include the Great Recession of 2008 and the Dotcom Bubble burst in 2000