DB Structurer interview with FX desk
I have an interview coming up with DB FX desk for the structuring role..
I would appreciate any thoughts about what kind of questions shall I expect. Thanks a lot!!
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I would be aware of what is going on in the currency markets lately. e.g. CHF/USD is at a record high, AUD/USD is plunging due to reason A,B,C. etc..
know what is going on with fiscal policy that would cause currency fluctuations. e.g. fed promises int rates at near zero through 2013.
Know your NDF currencies. Which countries are part of the EUR zone. (which have debt issues and are a drag on the others).
Be able to explain daylight risk.
Hope that helps.
In addition to trailmix's points, which are great for any FX related role, make sure you know your options and the different structures since it is a structuring role.
For example, how would you structure a barrier option that pays you back your premium if it gets knocked out? Ans: Also have a one-touch option where the trigger is the same spot level as the barrier in the other option.
Some basic options questions: - Explain skew - Gamma scalping - Smile-hedge vs BS-hedge
Those are just off the top of my head. I did a summer in FX Structuring before I landed on the Macro FX Sales Desk but I still work with them given their key role.
Hope this helps.
Good advices so far.
In interviews, I have been asked basic things such as:
What is your view on xyz? If you would advise a client to invest according to that view, what strategies would you suggest? What risks would the client have then? How can you change the risk profile if you want xyz? Tell me the price of a digital if spot is at x, impl. vol at y, strike z, 1y till maturity, both rates 0. What is the vega and gamma of a digital ITM, ATM and OTM? How do you price a basket of xyz?
What is the current vol of EURUSD, whats the risky, fly?
And brainteasers.
Good luck!
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