Innovation Incubator Advisory Interview Questions and Answers

ISDA is International Swaps and Derivatives Association. Components of master agreement include terms for governing transactions, events of default, and termination provisions.

• ISDA stands for International Swaps and Derivatives Association

• Components of master agreement include terms for governing transactions

• Events of default are outlined in the master agreement

• Termination provisions are also included in the master agreement

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

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• Derivatives allow investors to take on leverage and potentially amplify returns.

• Derivatives are traded on exchanges or over-the-counter (OTC) markets.

• Example: A call option on a stock gives the holder the right to buy the stock at a speci...read more

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation: Trade is proposed and agreed upon by parties involved.

• Trade execution: Trade is executed on the agreed terms.

• Trade confirmation: Parties confirm the details of the trade.

• Trade settlement: Payment and transfer of securities are completed.

• Trade reconciliation: Ensuring all details match between parties' records.

• Trade reporting: Reporting the trade to relevant authorities.

• Tr...read more

Beta is a measure of a stock's volatility in relation to the overall market.

• Beta indicates how much a stock's price moves in relation to the market as a whole.

• A beta of 1 means the stock moves in line with the market, while a beta greater than 1 is more volatile and less than 1 is less volatile.

• Beta helps investors assess the risk of a stock compared to the market.

• For example, a stock with a beta of 1.5 is expected to move 50% more than the market.

• A stock with a beta of 0.5 i...read more

Hash map is a data structure that stores key-value pairs and uses a hash function to map keys to their corresponding values.

• Hash map consists of an array of buckets, each containing a linked list of key-value pairs.

• When inserting a key-value pair, the hash function is used to determine the index of the bucket where the pair should be stored.

• To retrieve a value, the hash function is used to find the corresponding bucket and then search the linked list for the key.

• Hash collisio...read more