Hi, i've just got onto a grad training scheme with a prop firm and need a little help answering some questions in the course pack. Some the questions i kinda know the answer to but they've set the pass rate so damn high i need it to be perfect!
Equities
We have to know the top 5 companies in each the major indices.
I seem to get conficting info from websites. Is there anyway to calculate what the current market cap of a company ?
OLI Large Caps - Top 20 by Market Capitalization
The Forbes 2000 - Forbes.com
E.g for the UK its
BP
Royal Dutch Shell
Vodafone
GlaxoSmithKline
HSBC
someother websites put RBS in the top 5 but i doubt it is right now!
The ECB
Am i right in thinking its jus 6 members on the executive board who vote for i rate changes. i find ecb website is unclear and rubbish
FX
What is the difference between a pair and a cross?
How they can effect different financial markets?
I know Gold and the $ are usually inversely related but at the moment they are moving together right?
are there any other standard relations. there must be a relationship between the dollar and oil as if the dollar is weak, countries purchasing power will increase boosting demand for oil?
What does book squaring mean?
If the market expects a rate hike from the mpc with a vote of 8/1 in favour. It emerges that the vote was in fact 5/4 in favour, which product would be most directly affected and what would u expect to happen in this market?
as STIR products are based on interest rates i would imagine these would be the most affected. if the hike is already priced into the market and it emerges the vote was closer than expected would this imply that further rate hikes are not expected and thus increasing the value of bonds and short sterling?
how do countries strengthen their currency?
buy bonds on the open market?
buy the £ by selling the euro using currency reserves?
increase i rates
What type of yield curve indicates an upcoming recssion?
is that an inverted curve. so high i rates now, low rates in the medium term followed by higher rates in the long term?
The number of derivative contracts that are currently active on a specific underlying security and that have identical terms is know as what?
open interest?
any answers much appreciated
thanks
rascal07
Equities
We have to know the top 5 companies in each the major indices.
I seem to get conficting info from websites. Is there anyway to calculate what the current market cap of a company ?
OLI Large Caps - Top 20 by Market Capitalization
The Forbes 2000 - Forbes.com
E.g for the UK its
BP
Royal Dutch Shell
Vodafone
GlaxoSmithKline
HSBC
someother websites put RBS in the top 5 but i doubt it is right now!
The ECB
Am i right in thinking its jus 6 members on the executive board who vote for i rate changes. i find ecb website is unclear and rubbish
FX
What is the difference between a pair and a cross?
How they can effect different financial markets?
I know Gold and the $ are usually inversely related but at the moment they are moving together right?
are there any other standard relations. there must be a relationship between the dollar and oil as if the dollar is weak, countries purchasing power will increase boosting demand for oil?
What does book squaring mean?
If the market expects a rate hike from the mpc with a vote of 8/1 in favour. It emerges that the vote was in fact 5/4 in favour, which product would be most directly affected and what would u expect to happen in this market?
as STIR products are based on interest rates i would imagine these would be the most affected. if the hike is already priced into the market and it emerges the vote was closer than expected would this imply that further rate hikes are not expected and thus increasing the value of bonds and short sterling?
how do countries strengthen their currency?
buy bonds on the open market?
buy the £ by selling the euro using currency reserves?
increase i rates
What type of yield curve indicates an upcoming recssion?
is that an inverted curve. so high i rates now, low rates in the medium term followed by higher rates in the long term?
The number of derivative contracts that are currently active on a specific underlying security and that have identical terms is know as what?
open interest?
any answers much appreciated
thanks
rascal07
