Sample interview questions: Describe your experience with trading derivatives in various markets.
Sample answer:
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Experience with Exotic Derivatives:
- Successfully traded path-dependent options, including Asian, Barrier, and Lookback options, to capitalize on unique market opportunities.
- Demonstrated expertise in pricing and hedging complex derivative instruments, including variance swaps, quanto options, and weather derivatives.
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Derivatives Trading Strategies:
- Developed and implemented innovative trading strategies that combined fundamental analysis, technical indicators, and quantitative models to identify profitable trading opportunities.
- Consistently generated alpha by exploiting market inefficiencies, capturing option premia, and managing risk effectively.
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Cross-Market Arbitrage:
- Implemented inter-market arbitrage strategies, taking advantage of pricing discrepancies between different markets, such as equity and commodity markets, to generate risk-adjusted returns.
- Successfully captured cross-sectional and temporal arbitrage opportunities, contributing to the overall portfolio performance.
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Volatility Trading:
- Demonstrated proficiency in trading volatility derivatives, including VIX options and variance swaps, to benefit from market volatility and uncertainty.
- Implemented dynamic hedging strategies to manage the sensitivity of the portfolio to volatility fluctuations, preserving capital and enhancing returns.
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Risk Management and Hedging:
- Developed … Read full answer