Multi Commodity Exchange of India Interview Questions and Answers

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price.

• Call options give the buyer the right to buy an underlying asset at a specified price within a certain time frame.

• Put options give the buyer the right to sell an underlying asset at a specified price within a certain time frame.

• American options can be exercised at any time before the expiration date.

• European options can only be exer...read more

Commodity derivatives are financial instruments used to manage risks associated with commodity price fluctuations.

• Commodity derivatives are contracts that allow investors to buy or sell a commodity at a future date and price.

• They are used to hedge against price volatility and manage risk in the commodity market.

• Examples of commodity derivatives include futures contracts, options contracts, and swaps.

• Futures contracts are agreements to buy or sell a commodity at a specific pri...read more

Exchange and clearing corporations facilitate the trading of securities by providing a platform for buyers and sellers to transact.

• Exchange corporation matches buy and sell orders for securities.

• Clearing corporation ensures the settlement of transactions by transferring securities and funds between parties.

• Exchange and clearing corporations work together to ensure smooth and efficient trading processes.

• Examples include NYSE (exchange) and DTCC (clearing).

Futures/forwards are financial contracts that allow parties to buy or sell an asset at a predetermined price on a future date.

• Futures are standardized contracts traded on exchanges, while forwards are customized contracts traded over-the-counter.

• They are commonly used for hedging against price fluctuations in commodities, currencies, and financial instruments.

• The price of futures/forwards is determined by the current market price of the underlying asset, as well as supply and...read more

Financial valuation of a company involves assessing its worth based on various factors like assets, liabilities, cash flow, and market trends.

• Consider the company's financial statements, including balance sheet, income statement, and cash flow statement.

• Evaluate the company's assets, liabilities, and equity to determine its net worth.

• Analyze the company's cash flow to assess its ability to generate profits and meet financial obligations.

• Take into account market trends, indust...read more

Outlook uses various ports for different services such as SMTP, IMAP, and POP3.

• Outlook uses port 25 for SMTP (Simple Mail Transfer Protocol) for sending emails.

• Outlook uses port 587 for SMTP with TLS (Transport Layer Security) for secure email transmission.

• Outlook uses port 993 for IMAP (Internet Message Access Protocol) for receiving emails.

• Outlook uses port 995 for POP3 (Post Office Protocol) for receiving emails.