Bovespa and CBLC launch new product in Brazil
Brazilian investment bank Companhia Brasileira de Liquidação e Custódia (CBLC) and Brazilian exchange Bovespa have released a new structured product that provides protection against adverse price variation on the stock market.
The Protected Participative Investment (POP) is a standardised equity product, exchange-traded, with predetermined levels of capital protection. POP combines three financial operations: buying shares in the cash market, buying a put option and selling a portion of a call option.
This combination allows investors to determine an amount of capital they want to protect and a percentage of the potential gains they are willing to give up to have this protection.
A structured product previously
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