Pcg Relationship Manager Interview Questions and Answers

Option strategy refers to a set of techniques used by investors to achieve specific investment goals using options contracts.

• Option strategies involve buying and/or selling options contracts to create a specific risk/reward profile.

• Common option strategies include covered calls, protective puts, straddles, and strangles.

• Investors use option strategies to hedge risk, generate income, or speculate on market movements.

• Each option strategy has its own unique characteristics and p...read more

YTM is calculated by finding the rate that equates the present value of a bond's future cash flows to its current price.

• YTM takes into account the bond's current price, par value, coupon rate, and time to maturity.

• It is calculated using trial and error or financial calculators.

• YTM is expressed as an annual percentage rate.

• For example, if a bond is priced at $950 with a par value of $1,000 and a coupon rate of 5%, the YTM can be calculated to find the rate of return.

PE ratio is a financial metric used to evaluate a company's stock price relative to its earnings.

• PE ratio stands for Price-to-Earnings ratio

• It is calculated by dividing the current stock price by the earnings per share (EPS)

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may suggest undervaluation