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10+ Kotak Mahindra Bank Interview Questions and Answers
Q1. What are hedge funds, and what are their products and structures?
Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and use various strategies to generate high returns.
Hedge funds typically have high minimum investment requirements and are only available to accredited investors.
They often use leverage and derivatives to amplify returns.
Hedge funds can invest in a wide range of assets, including stocks, bonds, commodities, and real estate.
Common hedge fund strategies include long/short ...read more
Q2. What are bonds and what are the different types of bonds?
Bonds are debt securities issued by companies or governments to raise capital. Different types include corporate bonds, municipal bonds, and treasury bonds.
Bonds are essentially loans that investors give to companies or governments in exchange for periodic interest payments and the return of the bond's face value at maturity.
Corporate bonds are issued by corporations to raise capital for various purposes, such as expansion or acquisitions.
Municipal bonds are issued by state a...read more
Q3. What is the difference between the dirty price and the clean price of a bond?
Dirty price includes accrued interest while clean price does not.
Dirty price includes accrued interest that the buyer must pay to the seller on top of the bond's market price.
Clean price is the market price of the bond without the accrued interest added.
The difference between the dirty price and the clean price is the accrued interest.
For example, if a bond has a clean price of $1,000 and accrued interest of $20, the dirty price would be $1,020.
Q4. What are corporate actions and what are their types?
Corporate actions are events initiated by a public company that impact its shareholders and securities.
Types of corporate actions include dividends, stock splits, mergers and acquisitions, rights issues, and spin-offs.
Dividends are payments made to shareholders from a company's profits.
Stock splits involve dividing existing shares into multiple shares to lower the price per share.
Mergers and acquisitions occur when two companies combine or one company buys another.
Rights issu...read more
Q5. Write function to calculate value of x to the power of n
Function to calculate x to the power of n
Create a function that takes two parameters, x and n
Use a loop to multiply x by itself n times
Return the result
Q6. Comparator vs Comparable. Sort List of employee object using salary attribute
Comparator is used to define custom sorting logic, while Comparable is used to implement natural ordering. Sort list of employee objects by salary using Comparator.
Create a Comparator implementation to compare employee objects based on salary attribute
Use Collections.sort() method with the custom Comparator to sort the list of employee objects
Q7. Option pricing model- BSM assumptions and explanation
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 of European-style options.
BSM formula: C = S0*N(d1) - X*e^...read more
Q8. write classes and methods for bookmyshow
Classes and methods for bookmyshow to manage booking and ticketing system.
Create a class for Ticket with attributes like ticket ID, showtime, seat number, etc.
Create a class for Show with attributes like movie name, theater, showtime, etc.
Create a class for Booking with attributes like booking ID, tickets booked, total price, etc.
Methods like bookTicket() to book a ticket, cancelTicket() to cancel a ticket, getAvailableSeats() to check available seats, etc.
Q9. Why is ATM option delta 0.5
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 highest gamma and vega values compared to other options.
For e...read more
Q10. Explain options and it’s pricing
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 within a specific time period
The price of an option is de...read more
Q11. Intersection of Linked List
Intersection of two linked lists is finding the node where they merge.
Traverse both lists to find their lengths and the difference in lengths
Move the pointer of the longer list by the difference in lengths
Traverse both lists in parallel until they intersect
Q12. Collections in java
Collections in Java are used to store and manipulate groups of objects.
Collections framework provides interfaces (List, Set, Map) and classes (ArrayList, HashSet, HashMap) for storing and manipulating data
Collections offer methods for adding, removing, and accessing elements in a collection
Collections can be sorted, filtered, and iterated over using various methods
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