GraphX Solution Interview Questions and Answers

Hedge purpose in derivatives market is to manage risk exposure.

• Hedging involves taking an offsetting position in a related security to reduce risk

• It is used to protect against adverse price movements in an asset

• Examples include using futures contracts to hedge against commodity price fluctuations

• Hedging can also be used to lock in profits or limit losses

Explaining a concept with a real-time example

• Choose a concept to explain

• Provide a real-time example that illustrates the concept

• Break down the example to show how it relates to the concept

Electronic payment methods are becoming increasingly popular due to their convenience and security.

• Electronic payments can be made through various methods such as credit/debit cards, mobile wallets, and online banking.

• These methods offer faster and more secure transactions compared to traditional payment methods.

• Electronic payments also provide a record of transactions, making it easier to track expenses and manage finances.

• Examples of popular electronic payment methods inclu...read more

Fixed income refers to investments that provide a fixed return, such as bonds or CDs.

• Fixed income investments typically have a set interest rate or dividend payment.

• They are considered less risky than stocks, but also offer lower potential returns.

• Examples of fixed income investments include government bonds, corporate bonds, and certificates of deposit (CDs).

OD concepts refer to organizational development principles and practices aimed at improving effectiveness and efficiency within a company.

• OD concepts focus on improving organizational culture, communication, and employee engagement.

• Examples include change management, team building, leadership development, and performance management.

• OD concepts often involve interventions such as training programs, surveys, and coaching sessions.

• The goal of OD is to enhance organizational effe...read more

Future and option are both financial derivatives used for trading in the stock market.

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

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

• Futures are more standardized and have higher liquidity, while options offer more flexibility and lower risk.

• Both futures and options can be used fo...read more