State Street Corporation Associate2 Interview Questions, Process, and Tips

Reasoning, arithmetic, communication

Q1. Balance sheet related asked?
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Q2. About equity, derivatives, options
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Q1. Explaining experience of our work in previous company
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Q2. Asking related questions based in our previuos experience
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Q1. What do you mean by swap
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A swap is a financial derivative contract in which two parties agree to exchange one stream of cash flows for another.
• Swaps are commonly used to hedge against interest rate risk or to speculate on future market movements.

• The two most common types of swaps are interest rate swaps and currency swaps.

• In an interest rate swap, two parties agree to exchange fixed and floating interest rate payments based on a notional princ...read more
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Q2. Types of swaps? Accrual calculation
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Types of swaps include interest rate swaps, currency swaps, and commodity swaps. Accrual calculation is the process of determining the amount of interest earned or owed on a swap.
• Interest rate swaps involve exchanging fixed and floating interest rate payments based on a notional amount.

• Currency swaps involve exchanging principal and interest payments in different currencies.

• Commodity swaps involve exchanging cash flows...read more
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Q3. What do you mean by corporate action
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Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders and can include dividends, stock splits, mergers, acquisitions, and more.
• Corporate actions are events initiated by publicly traded companies

• They can impact shareholders and may involve changes in ownership, capital structure, or financial position

• Examples of corporate actions include dividends, stock splits, merger...read more
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Q4. About you last job ? Your role
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Q1. Margin calculation for futures
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Margin calculation for futures
• Margin is the amount of money required to open a futures position

• It is calculated based on the contract size, price, and leverage

• Initial margin is required to open a position, maintenance margin to keep it open

• Margin calls occur when the account falls below the maintenance margin

• Example: Buying one E-mini S&P 500 futures contract with a contract size of $50 x S&P 500 index value and a pric...read more
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Q2. Types of derivatives
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Derivatives are financial instruments that derive their value from an underlying asset or security.
• Types of derivatives include futures, options, swaps, and forwards.

• Futures are contracts to buy or sell an asset at a predetermined price and date.

• Options give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Swaps involve exchanging cash flows based on different fina...read more
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Q1. Previous work experience
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Q2. How to calculate NAV
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NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.
• Calculate the total value of assets

• Subtract the total value of liabilities

• Divide the result by the number of outstanding shares

• NAV = (Total Assets - Total Liabilities) / Outstanding Shares

• NAV is used to determine the value of a mutual fund or ETF
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