middle office interview

[surya007]

Hey even i have an interview in the middle office of an IB,
it will be for the Equities segment,Theoritically i understood the pnl concept,
will you be kind enough to tell me if its an exchange traded derivatives how will an pnl be explained

 

[Dommo]

Hey even i have an interview in the middle office of an IB,
it will be for the Equities segment,Theoritically i understood the pnl concept,
will you be kind enough to tell me if its an exchange traded derivatives how will an pnl be explained

Well, my experience of PL explain was in fx options, but I imagine you would do a similar exercise in equity options. I never encountered the issue, but I don't think that exchange/OTC option type really affects the idea described above, which is basically just an explanation of change in option value as a function of its underlyings.

Finally, I didn't work in MO and I am reluctant to speculate on MO responsibilities - I think there are other contributors with that experience. The whole MO exercise is, I am sure, bigger than the question I answered (ie "what is PL attribution?"), but I would also be thinking about things like portfolio changes, funding, dividends, cash positions, etc.

Good luck with the interview

 

[surya007]

Well, my experience of PL explain was in fx options, but I imagine you would do a similar exercise in equity options. I never encountered the issue, but I don't think that exchange/OTC option type really affects the idea described above, which is basically just an explanation of change in option value as a function of its underlyings.

Finally, I didn't work in MO and I am reluctant to speculate on MO responsibilities - I think there are other contributors with that experience. The whole MO exercise is, I am sure, bigger than the question I answered (ie "what is PL attribution?"), but I would also be thinking about things like portfolio changes, funding, dividends, cash positions, etc.

Good luck with the interview

Thanks buddy...
will definitely get in touch with you for any further help, thanks once again