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Feb 29, 2012

Jun 26, 2012
 I was asked to describe in detail the hedges I would implement to protect myself on a cargo of Petroleum bought today for future delivery in one region on local pricing with intention to deliver if by sea to a different region on totally different pricing.6 Answerssimple.. sell it on spot again.. n save on physical movement. but if market is getting low, then go for put option...Hi Athos, could u plz elaborate this..can swap be implemented here..Go short on futures with expiration at delivery dateShow More ResponsesHi .. Was this the final round interview in Geneva? Can you elaborate a little more on what all questions were asked? Thanks.you might also have to hedge the exchange rate risk between the currencies...if u hedge by going short on futures than ur currency risk is hedged automatically as ur futures are in USD...

Sep 19, 2012
 “Given the numbers 1 to 1000, what is the minimum numbers guesses needed to find a specific number if you are given the hint "higher" or "lower" for each guess you make.”6 AnswersI found 1 of the questions on their test here: http://www.math.ku.dk/~rolf/teaching/mfe03/mfe03.soln.pdfIs this 10? 2^10 > 1000 and 2^9 < 1000?The answer is 1. Read the question carefully. It asks for the minimum # of guesses for a number between 1 and 1000. If you guessed the # right the first time, you don't need to guess again.Show More ResponsesCrazy is crazinessidt9

Jul 6, 2012
 If the clock is at 9:30, what angle is it at?6 Answers9:00 = 90* 3 = 270 degree 0:30 = 90 / 6 = 15 degree Therefore 9:30 = 285 degreeIsn't it 90 + 15 = 105 degrees?Yea its 105 degreesShow More Responsescan you explain the 105? isnt it just 90 between the 9 and 6 on the clock face?It's 90 degrees between 9 and 6 o'clock but the hour hand will move half way towards 10. Since there's 3 hours between the 9 and 6 we can say 1 hour = 90/3 = 30. The initial 90 degrees + the additional (1/2)*30 = 105 degrees.90+((360/60)*2.5)=105

Mar 27, 2012
 A bunch of people sit down at a circular table. How many combinations are there or certain people sitting down next to others?4 AnswersI guess it's 2*(N-1)! ?? Thought of people sitting in a line, then it should be N!. But now it's a round table so consider the start and end position are bundled. So it's (N-1)!, but since this tie has two people so should be (N-1)! * 2.Seems incorrect. Suppose we have two people and of course they are required to sit together, there would be only 1 way to arrange which is not (2-1)!*2. To complete the process: get one of the "friends" seated on an arbitrary chair, his or her friend can be seated at the next chair either clockwise or counter clockwise if the two chairs are not identical (which is true when N=2). After this, seats are no longer indistinguishable, and the number of ways to arrange the rest of the people would be (N-2)! Hence, result =1, if N=2, and result=2*(N-2)!, if N>2. Simple check, suppose there are three people A, B, C, and A B must be together. Permutation: ABC ACB BAC BCA CAB CBA Because table is round, ABC=BCA=CAB, ACB=CBA=BAC. And in this case, both ABC and ACB allow AB sitting together. Hence, result=(3-2)!*2=2, the answer is correct.It's (N-1)! There are N! ways of situating N people in a line, but since the ends are now connected we have translational invariance, i.e. person 1 could be in any of N spots. Therefore, we are actually overcounting by N, so there are N!/N=(N-1)! combinations. To Sherry, just because it works for one case, doesn't mean it's the general formula!Show More ResponsesI guess to guarantee that two certain people sit beside each other, we have to bundle them to each other. That means the possible combinations around the table would be (N-2)!. However, for the bundled group of two people, there is a 2! combination. Therefore the final answer would be (N-2)!*2!.

Dec 20, 2012

Mar 4, 2012
 Suppose there's a 60% chance of rain on saturday, and a 80% chance of rain on sunday. Given that it rained over the weekend, what's the chance it rained saturday?3 AnswersUse Baye's formula: b=p(rain over weekend)=1-p(no rain over weekend)= 1-(.4*.2)=.92 a=(p rain on saturday)=.6 p(b given a)= 1 since if it rained on sautrday, it had to rain overhe weekend so p(a)*p(b given a)/p(b)=.6/.92=.65=p(a given b)=p( rain on saturday given it rained on the weekend)0.65 > 0.5 dude... think againThe first answerer is correct I think. One of the following happened: It rained on Saturday only: 0.6 * 0.2 = 0.12 It rained on Sunday only: 0.4 * 0.8 = 0.32 It rained on Saturday and Sunday: 0.6 * 0.8 = 0.48 Add these up: 0.92 total of it raining over the weekend. But the question is stated that it's given that it rained over the weekend. So: Pr(Saturday) = (0.12 + 0.48) / 0.92 = 0.6 / 0.92 = .652 (roughly 2/3)

Jan 29, 2012
 Gave different spreads (butterflies,call,put) and prices and I had to figure out the price of certain strike calls and puts. interesting mixture between logic and options knowledge. 2 AnswersI can't remember exact answer but I used put call parity equation frequently and algebra to solve for a given strike (i.e. put spread and put butterfly to solve for a strike in the butterfly).is the second round very difficult?