Derivative Analyst Interview Questions and Answers for Freshers

My last risk was investing in a startup that failed to secure funding.

• Invested a significant amount of money in a startup

• Startup failed to secure funding and had to shut down

• Lost the invested money as a result

Futures are an obligation to buy/sell an asset at a specific price on a future date, while options give the right but not obligation to buy/sell at a specific price on or before a future date.

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

• Futures have unlimited profit and loss potential, while options have limited risk and unlimited profit potential.

• Futures require margin, while options require a premium....read more