Morgan Stanley Interview Questions and Answers for Experienced

Black-Scholes-Merton (BSM) model is a mathematical model used for pricing options.

• BSM model assumes constant risk-free rate, constant volatility, and lognormal distribution of stock prices.

• It assumes no dividends are paid during the option's life.

• The model assumes the option can only be exercised at expiration.

• The underlying stock follows a geometric Brownian motion.

• The model is used to calculate the theoretical price ...read more

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

• Options can be call options or put options

• 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...read more

ATM option delta is 0.5 because it represents a 50% chance of the option expiring in-the-money.

• ATM option delta is 0.5 because it is at-the-money, meaning the option strike price is equal to the current underlying asset price.

• Delta measures the sensitivity of an option's price to changes in the underlying asset price.

• A delta of 0.5 indicates a 50% probability of the option expiring in-the-money.

• ATM options have the hig...read more

I will establish clear policies, procedures, and controls to ensure data integrity and minimize risks.

• Implementing data governance frameworks to define roles, responsibilities, and processes for managing data

• Leveraging technology solutions such as data encryption, access controls, and monitoring tools

• Regularly conducting risk assessments to identify potential vulnerabilities and mitigate them

• Ensuring compliance with re...read more

Risk for projects can be estimated by considering factors such as project complexity, team experience, stakeholder involvement, and external dependencies.

• Assess project complexity and potential challenges

• Evaluate team experience and expertise in handling similar projects

• Consider stakeholder involvement and communication

• Identify external dependencies and potential risks

• Use risk management techniques such as risk registe...read more

Onboarding stakeholders for cloud migration involves communication, training, and collaboration.

• Communicate the benefits of cloud migration to stakeholders, addressing any concerns or questions they may have.

• Provide training sessions to educate stakeholders on the new cloud technology and how it will impact their work.

• Collaborate with stakeholders to gather feedback, address any issues, and ensure a smooth transition t...read more

Singapore WHT stands for Singapore Withholding Tax, which is a tax deducted at source on certain types of income.

• Singapore WHT is applicable on payments such as interest, royalties, and services provided by non-residents.

• The tax rate for Singapore WHT varies depending on the type of income and the tax treaty between Singapore and the country of the recipient.

• Singapore WHT is usually deducted by the payer of the income ...read more

CRS stands for Common Reporting Standard, a global standard for the automatic exchange of financial account information between tax authorities.

• CRS was developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion.

• It requires financial institutions to collect and report information on foreign tax residents to their local tax authorities.

• Over 100 countries have committed to impleme...read more