Options on Bovespa B3 BR+ Index

The product
The objective of the Bovespa B3 BR+ Index (IBBR) is to be the indicator of the average performance of the quotations of the most negotiable and representative assets. The Bovespa B3 BR+ Index is composed of shares, units, and BDRs of Brazilian companies listed on B3. As for BDRs, it is necessary that the primary listing of the underlying asset be made on the stock exchanges of the United States (USA)

Options on Bovespa B3 BR+ Index are derivatives developed to mitigate prices changes, offering a protection mechanism to participants against possible losses. In addition, it allows different types of speculative strategies regarding price movements and increasing its exposure to a specific market with little capital.

Underlying	Bovespa B3 BR+ Index
Ticker	IBBR
Option style	European
Contract size	Ibovespa B3 BR+ multiplied by the index point value in Brazilian Reals, each point BRL1
Quotation	Option premium, expressed in Bovespa B3 BR+ index points.
Tick size	0.05 Index point
Round-lot	1 contract
Last trading day	Expiration date
Expiration date	3rd Friday of the month. If this day is a holiday or a non-trading day at B3, the last trading day will be on the following business day.
Contract months	All months
Option exercise	On the expiration date, the option exercise is performed automatically by B3, according to the following conditions: Call option (call): If the result of the difference between the settlement price of the contract object and the exercise price for the principal owner, is positive. Put option (put): If the result of the difference between the exercise price and the settlement price of the contract subject to the principal owner, is positive

Benefits
- Instrument for hedging strategy against exposure in variable income.
- Possibility to replicate the behavior of the index without the initial financial outlay.
- No need for margin deposit for holder positions.
- After the premium payment, there is no cash flow for the parties regarding daily adjustments