The questions you're being asked are very basic "finance 101" questions. if you expect to be asked more questions like that in the future, you would do well to read through an investments textbook---look around on amazon to get an idea of what books people tend to read---and to start reading a financial newspaper a couple of times a week, like the Financial Times or the Wall Street Journal. Reading through a textbook might sound daunting, but I guarantee you that it will be a much easier read than your average analytic number theory paper!Also, if you're applying for quant jobs, you should at least read the Hull textbook "Options, Futures and Other Derivatives" (especially the middle chapters on options leading up to the derivation of the Black-Scholes formula) and the brainteaser textbook "Heard on the Street" by Timothy Crack. Regarding the latter, you'd quite be surprised how often firms ask the same brainteasers over and over again.
Last edited by gentinex
on October 20th, 2006, 10:00 pm, edited 1 time in total.