BUSINESS CASE

CALL ME MAYBE
Tomorrow you have your first technical interview for a Summer internship in the trading room of your dream bank. All
previous interviews have gone well because you spent time preparing the HR and Fit questions. For the technical one, it's a
different story... you're afraid you won't be able to do it. You decide to call a finance professional to find out what the first
technical questions you need to know are usually!

Q1. What’s a Call option?

Q2. What’s a Put option?

Q3. What are the parameters that affect the price of a Call? Put?

Q4. If the price of the underlying rises, will the price of the Call rise or fall? Why or why not?

Q5. If the volatility of the underlying rises, will the price of the Call rise or fall? Why or why not?

Q6. If the maturity of the underlying increases, will the Call price increase or decrease? Is this really the case?

Q7. If the dividend yield of the underlying increases, will the Call price increase or decrease? Why does this happen?

London Fox S.A.S. – Tous droits réservés – Copyright ©