Derivatives
Neutral Hedge Ratio
January 30, 2022
Finance
Callable Multi-Barrier Reverse Convertible
January 30, 2022

A Mexican equivalent to a currency forward contract (contrato de cobertura). A coberatura allows an investor willing to hedge peso currency risk to pay forward points to lock in the spot exchange rate. At settlement, the investor receives the difference between the initial spot rate and the spot rate at the time of settlement.

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