PIB

PIB Quartely Event Contracts

• The product

  PIB Quartely Event Contracts are derivative instruments listed on B3 that allow investors to take positions on whether a specific event related to one of the main economic indicators of the Brazilian market will occur, based on its official publication.

  These contracts operate similarly to a binary exercise option, where the outcome at expiration is objective and predefined:

  • If the event occurs, the contract is settled at a fixed value of R$100.
  • If the event does not occur, the contract expires worthless.

  The contract price reflects the probability assigned by the market to that outcome, quoted on a scale from 0 to 100 points.

  At expiration, automatic cash settlement takes place, with a fixed payment of R$100 per contract, exclusively for contracts whose event is confirmed.

  In compliance with CVM regulatory guidelines, PIB Event Contracts will be restricted to professional investors.

  Contracts

  

  Event-Based Call Contract on PIB Quartely Contract (.pdf, 184kb)

  

  Event-Based Put Contract on PIB Quartely Contract (.pdf, 184kb)

• Specifications

  Underlying	Asset Quartely PIB, calculated and published by the Brazilian Institute of Geography and Statistics (IBGE)
  Ticker	PCA
  Option style	European
  Contract size	100 points, with each point equivalent to R$1.00
  Quotation	Contract premium expressed in points, with two decimal places
  Tick size	0.01 point
  Round-lot	1 contract
  Last trading day	Business day preceding the expiration date
  Expiration date	According to the IBGE publication calendar
  Contract months	All months
  Option exercise	On the expiration date, the option exercise is perfomed autmatically by B3, according to the contract conditions

• Benefits
  • Simple and objective structure.
  • Fixed payoff of BRL 100 per contract when the event occurs.
  • Direct exposure to predefined scenarios for Ibovespa prices
  • Transparent price formation, reflecting the probability of contract exercise.
  • Objective and previously defined criteria for determining the event outcome.
  • Buyer’s and seller’s risk is known at the time of the trade and is limited.