📅 Question of the Day
Welcome to the "Question of the Day" section at Finance Tutoring! Every day, we present a question designed to test and deepen your knowledge in finance. Whether you're a beginner or an expert, our goal is to help you understand key concepts in an interactive and engaging way.
Join our daily quiz and challenge your skills. We cover a wide range of topics, from fundamental principles to more advanced subjects, all focused on financial markets, risk management, and much more.
Your mission: Answer the question of the day, justify your response in the comments, and come back tomorrow to discover the detailed explanation and the correct answer!
#FinanceTutoring #QuestionOfTheDay #Finance #RiskManagement #QuantitativeFinance
FINANCE TUTORING
Consulting and Training
📅 25/04/2025
QUESTION OF THE DAY – COMPENSATION HOUSE VS CCP
What is the main difference between a compensation house and a central counterparty (CCP)?
a) The compensation house calculates a net balance from gross transactions, while the CCP replaces the counterparty in the transactions.
b) The compensation house offers a central counterparty for all financial transactions, while the CCP is limited to derivative products.
c) Compensation houses play no risk management role, unlike CCPs, which take on this function.
d) The compensation house is limited to payment flows, while the CCP also handles derivative compensation and default management.
💬 Your answer? Justify it in the comments!
📈 Bonus: What is the specific role of CCPs in risk management, particularly during the 2008 financial crisis?
#FinanceTutoring #QuestionOfTheDay #CompensationHouse #CCP #RiskManagement #EMIR
FINANCE TUTORING
Consulting and Training
📅 18/04/2025
QUESTION OF THE DAY:
How does securitization work?
a) The proceeds from the issued securities are used to repay the initial investors.
b) The proceeds from the issued securities are used to finance the acquisition of the assets to be securitized.
c) The securitized assets automatically become listed instruments.
d) The issued securities grant a direct right to the cash flows of the securitization vehicle.
Answer tomorrow with an explanation!
FINANCE TUTORING
Consulting and Training
📅 17/04/2025
QUESTION OF THE DAY – RISK AND MARTINGALES
Why is the classic martingale a typical example of poor risk management?
a) Because it reduces the volatility of gains
b) Because it maximizes the expected gain
c) Because it relies on exponential growth of bets
d) Because it only works on efficient markets
💬 Your answer? Justify it in the comments!
📈 Bonus: What connection do you make between this strategy and the concept of "tail risk"?
#FinanceTutoring #QuestionOfTheDay #Martingale #RiskManagement #Variance #QuantitativeFinance