Derivatives

Neutral Hedge Ratio

January 30, 2022
Finance

Callable Multi-Barrier Reverse Convertible

January 30, 2022

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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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