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In an interview for BA I was asked an interview question that if you're with client and client says something about which you do not know what should you do? E.g. client says ".....Butterfly options valuation...."
Should I stop the client and ask what are butterfly options and ask them to explain it in a polite manner?
Because that's what I answered but they did not seem happy with the response and I was not selected.
Personally, I've made a career out of accepting responsibility when I get something wrong, and asking questions right away if I don't know something.
There are some verbal cues that you can use to minimize disruption, like "Pardon me, could you back up a moment?" or "Just a moment, I want to make sure I'm clear on this..." If you just misheard something this gives the client a chance to clear that up. If they repeat and it still doesn't make sense, move into something more declarative like "I'm not sure I've heard of that. Could you sketch it out for me?"
DO NOT be apologetic. It's not a crime to not know something. Welcome the opportunity to learn and thank them for the explanation.
It is much better to be able to admit to a gap in your knowledge than to pretend to know key points that you clearly don't.
