Sammaan Capital Limited Interview Questions and Answers

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

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

• Both futures and forwards are used for hedging or speculation.

• Example: A farmer can use a futures contract to lock in a price for their crops before harvest.

• Example: An investor can use a forward contract to buy a foreign cu...read more

Credit default swaps are financial contracts that allow investors to protect themselves against the risk of default on a debt instrument.

• Credit default swaps are essentially insurance policies on debt instruments.

• They allow investors to transfer the risk of default to another party.

• The buyer of a credit default swap pays a premium to the seller, who agrees to pay out in the event of a default.

• Credit default swaps played a major role in the 2008 financial crisis.

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

• Call option: gives the buyer the right to buy an underlying asset at a predetermined price within a specified time period

• Put option: gives the buyer the right to sell an underlying asset at a predetermined price within a specified time period

• American option: can be exercised at any time before the expiration date

• European option: ca...read more

LIBOR and MIBOR are benchmark interest rates used in financial markets.

• LIBOR stands for London Interbank Offered Rate and is the average interest rate at which major banks in London lend to each other.

• MIBOR stands for Mumbai Interbank Offered Rate and is the interest rate at which banks in Mumbai lend to each other.

• Both rates are used as benchmarks for various financial products such as loans, mortgages, and derivatives.

• LIBOR is widely used in international markets while MIBO...read more

VLOOKUP searches for a value in the first column of a table and returns a corresponding value in the same row. HLOOKUP does the same horizontally.

• VLOOKUP: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• HLOOKUP: =HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])

• lookup_value: the value to search for in the first row or column of the table

• table_array: the range of cells that contains the data to be searched

• col_index_num/row_index_num: the colum...read more

A pivot table is a data summarization tool used in spreadsheet programs.

• It allows users to group and summarize large amounts of data in a concise, tabular format.

• Users can easily manipulate the data by dragging and dropping fields into different areas of the table.

• Pivot tables are commonly used in data analysis and business intelligence to identify trends and patterns.

• For example, a sales team might use a pivot table to analyze sales data by region, product, and time period.

Option chain is a list of all available options for a particular stock or index, showing their strike prices and expiration dates.

• Option chain helps traders to analyze and compare different options available for a stock or index.

• It includes information such as the option's strike price, expiration date, and implied volatility.

• Option chain can be used to identify potential trading opportunities and to manage risk.

• For example, a trader can use option chain to find the most prof...read more