Equity Derivatives BB Interview: behavioral and technical questions to expect?
Hi,
I got a interview with a BB for Equity derivatives trading position.
What kinds of questions should I expect in terms of behaviors and technical questions?
Thank you.
derive black scholes
Thank you.
This is for Goldman Sachs Interview. Do you have any other questions they might ask for this position?
it's SA position..
There are WSO interview guides that probably would benefit you, not too sure about specific questions. Also, I doubt they'll ask you to derive black scholes for a SA position. After all, it is 2010.....
Understand everything about implied vol
...
complete nonsense. I interviewed for a GS equity derivs analyst position once actually, a very long time ago. You will not be asked to derive anything. You will not be quizzed on Feynman-Kac. You will not even be asked much about implied vol. GS was, and probably still is, very fit based. They may ask if you know the inputs to black scholes. Or can talk about where gamma is the highest in the life of an option. Be prepared to talk about your background and why you are interested in the desk and the career of trading.
Equity Derivatives Interview (Originally Posted: 09/16/2012)
I have an interview for an Equity Derivatives Sales & Trading position and was wondering if anyone could point me in the right direction in terms of materials to skim over to prepare.
Also, for why equity derivatives, what should my response be? Does anyone work in equity derivatives that can tell me what some things are to include in my response (as to why I'm interested in equity derivatives in particular)? I realize this is largely subjective, but a few pointers would greatly appreciated.
Thanks in advance.
I got fascinated with equity derivs years ago. The ability to not only hedge against risk using them and/or be able to use them for speculative reasons i.e. buy/sell them with a relatively small amount of capital. However, the returns using them can be exponential.
I also like them because you can bet on events such as use straddles if an event is pending like the results of a lawsuit, earnings release etc. You can control 100 shares of stock with one put/call without investing but a relatively small amount in the premium of the option.
Don't want to sound redundant, but Barron's is a must-read before interviewing in equities or something dealing with equity markets. Skim Bloomberg articles. Have a good macro view as well.
I would research the company. Know why that company in addition to why eq. derivs. Also, demonstrate a love for the equity markets in general. For me, my interest was peaked when I started following the stock market back in high school. I bought my first stock then. Tell your story.
you want us to tell you why youre interested in the the position..?
So many ways to go with this.
how complicated is trading equity derivatives?
Thanks guys for your feedbacks. It's really helpful to me.
For Why trading and why not IB type of question, what kind of answers will looks good?
Thanks
Equity Derivatives Trading Interview (Originally Posted: 12/27/2014)
Hi everyone, I'm about to have interviews with an associate, VP and MD of an equity derivatives trading team at a BB for an off-cycle internship position.
What interview questions would they ask beyond the standard competency ones?
Preparation: -Read about stock options and the greeks from Naternberg -Do brainteasers -Keep up to date with current events using FT -Prepare a stock pitch (?)
Do you think these would cover it?
Is it only the traders? Or some sales dudes as well?
Remember they don't expect you to know everything. Know your greeks, just the basics. if they ask you : how do you hedge volatility (gamma)? Just explain to them you don't know exactly how to do this, but you know what gamma is, and you wouldn't mind having them guide you in how to get to the rest. Or work backwards and show them how to hedge your delta, then show them the relationship b/een your gamma and delta. In other words - ok if you don't know, just make sure you put some relevant knowledge to work.
If you don't know much, and didn't study much finance they shouldn't ask you much about options, and they will mainly be testing your intellect and how you react under pressure. Don't rush, take a deep breath and ask THEM questions every time you stumble on something.
Read the FT as you said - back to front. Read also about the company you are interviewing at and ask some random questions about stuff you have read recently in the press. Most likely they won't know themselves about what you are asking them, and will be positively surprised you are curious about the company.
You'll find most of what i wrote are generic interview advice, but at a very junior level that's as hard as it will get. Best of luck, I am familiar with your environment, and it's a great one to work in.
Thanks alot, that is some solid advice.
All three interviewers are traders. HR mentioned it will be a competency based interview with technicals. I come from a physics background so I'm expecting brainteasers and options. My first phone interview with the associate and VP were on options and brainteasers, so I am thinking the upcoming round will be kind of similar. I will read up and be familiar with the greeks by the interview.
brainteasers and greeks, they will ask you various forms of "how much would you pay to play this game". I would also ensure you have an understanding about probability and risk.
Some of these people have no idea what they are talking about. Unless you are a MFinEng or a PHD they are not going to ask you to derive BS or know measure theory or ito or any of that. Get real. If someone asks that they are ridiculous. That all takes significant, and occasionally very specific, mathematical background. Most complicated I'd expect is understand the greeks and their relationships.
Why Equity Derivatives? (Originally Posted: 12/06/2013)
I have an interview for an Equity Derivatives desk, and want to have a full solid answer as to why I am interested in joining an equity derivatives desk. Thoughts and helpful answers would be greatly appreciated.
Let's start with why you're interested in Equity Derivatives?
if you can't answer this on your own, maybe it's a sign you're interviewing for the wrong position
i m stranger to this topic and i wanna discus on this topic. i think this ia a good approach for every one. Thanks for sharing this information.
Equity Derivatives Trading Interview Advice (Originally Posted: 10/11/2008)
I have a superday with Morgan Stanley equity sales & trading coming up and I believe I will be meeting primarily with derivatives trading. Has anyone gone through this in the past? Any ideas as to specific types of questions? I've heard an assumption of many brainteasers but not from anyone that has gone through it.
agree with jimbo and revsly.
back in the day when i was interviewing for securities divison at GS, both the executive directors were in eq derivatives. mainly asked about my past experiences, why i want to go into this field, how i would invest money, why they should hire me, why gs, etc. the only technical question i got during superday was:
"you have a bunch of real estate investments in Florida, you wnt to buy insurance on it in case there is hurricane, how should the insurance be priced?" a.k.a how to replicate the payoff of the insurance?
the correct answer was: "buy orange juice futures, as FL is one of the largest orange growing states in US".
then i found out this exact question is in "when genius failed".
Lets hope MS still exists by time you have your interview.
Yea... that was my reaction as well...
NEVER lose your BlackBerry www.conveniencesoftware.com
ha ya believe me i am hoping for the same thing. this is assuming they are still around and they are hiring .....
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equity derivs job interview (Originally Posted: 11/18/2010)
http://www.xtranormal.com/watch/7650523/
"I was sexually abused."
Hahahaha.
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