# Finance interview questions and answers

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```					Finance interview questions and answers

Some of the most common interview questions for an investment banking interview
include (some are a bit on the tough side but they DO come up very often, increasingly as
a means of trimming down the candidate lists as the finance graduate job market gets
harsher):

1. How many degrees (if any) are there in the angle between the hour and the minute
hands of a clock when the time is a quarter past three? [Typically asked during
investment banking interviews for entry level investment banking graduate jobs]
2. Find the smallest positive integer that leaves a remainder of 1 when divided by 2,
a remainder of 2 when divided by 3, a remainder of 3 when divided by 4,... and a
remainder of 9 when divided by 10 [Asked during interviews for quantitative
finance jobs]
3. Two standard options have exactly the same features, expect that one has long
maturity, and the other has short maturity. Which one has the higher gamma?
4. How do you calculate an option's delta? [Asked during investment banking
5. When can hedging an options position make you take on more risk? [Typically
6. Are you better off using implied standard deviation or historical standard
deviation to forecast volatility? Why? [Asked during interviews for quantitative
finance jobs]
7. Describe "duration" and "convexity". Describe their properties and uses
banking jobs]
8. Two players A and B play a marble game. Each player has both a red and a blue
marble. They present one marble to each other. If both present red, A wins \$3. If
both present blue, A wins \$1. If the colors do not match, B wins \$2. Is it better to
be A or B, or does it matter? [Asked during interviews for quantitative finance or
derivatives jobs]
9. How do you "value" yourself? Here "value" means in financial terms [Typically
asked during interviews for MBA finance jobs or experienced banking hires]
10. What distinguishes you from other candidates we might hire? [Typically asked
during investment banking interviews for graduate investment banking vacancies]
11. If you could go on a cross-country car trip with any three people, who would you
choose? Why? [Typically asked during interviews for corporate finance / mergers
& acquisitions banking jobs]
12. Tell be about a stock you like or hate and why [Asked by job interviewers for any
accounting, finance or job!]
13. What is the difference between default and prepayment risk? [Typically asked
during interviews for credit jobs / risk management jobs]
14. How would you move mount Fuji? [Typically asked during investment banking
interviews for consulting jobs or graduate accounting jobs]
15. Estimate the annual car demand for car batteries [Typically asked during
interviews for corporate finance jobs, mergers & acquisition banking jobs or
consulting jobs]

You also find more interview questions at blog: http://phoneinterviewquestion.blogspot.com

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