Finance & Derivatives Questions for Market Maker Interviews
A market maker round does not test finance & derivatives the way a textbook does. This set is the overlap - the finance & derivatives questions that actually turn up in this format.
13 questions, all free to practise. The split is 12 medium, 1 hard.
- Conversion arbitrage from a parity violationMediumFinance & DerivativesView →
- Delta of a straddleMediumFinance & DerivativesView →
- Equivalent continuously-compounded rateMediumFinance & DerivativesView →
- Forward price with a cash dividendMediumFinance & DerivativesView →
- Gamma and rehedging P&LMediumFinance & DerivativesView →
- Implied dividend yield from a forwardMediumFinance & DerivativesView →
- Marking a seasoned forwardMediumFinance & DerivativesView →
- No-arbitrage call boundsMediumFinance & DerivativesView →
- Pricing a digital from a call spreadMediumFinance & DerivativesView →
- Put–call parity with a dividendMediumFinance & DerivativesView →
- Risk-neutral up probabilityMediumStochastic ProcessesFinance & DerivativesView →
- Short-straddle P&L when vol stays lowMediumFinance & DerivativesView →
- Reading N(d₂) in Black–ScholesHardFinance & DerivativesView →
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This set is a slice of two larger ones. If it is too narrow, start here instead:
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