INTERVIEW QUESTIONS: Société Générale, Equity Structuring, Internship

eFC logo
Question mark

Question:

What  the delta of an option when it is at the money (ATM)?

Student’s Answer:

0.5

Question:

What will happen to the price of the option if there is an increase in interest rates?

Student’s Answer:

It will increase according to the RHO Greek.

Question:

What is the price of an option if the volatility tends towards infinity? And what if the expiry date tends towards infinity?

Student’s Answer:

In both case the price is equal to the underlying price. (I was not sure if these were trick questions because volatility can't be more than 100% and if it is you simply won't exercise the option in my opinion.)

We cannot guarantee the authenticity of these questions nor the accuracy of the answers: they are what one candidate claims to have been asked by HSBC and have not been verified by the bank. To visit our list of banks’ graduate interview questions in 2013, click here.

Popular job sectors

Loading...

Search jobs

Search articles

Close