Options are Derivative Contracts that give the client the right, but not the obligation, to buy or sell an asset at a determined price (the strike price) at a determined date (the strike date).
In exchange for this right, the client pays a premium.
The minimum size of an option trade is USD10,000, and the underlying is the USD/MXN.
Advantages:
- The client can establish a maximum hedge price based on their specific needs
- Enables clients to benefit from an improvement in the market but limits the risk of depreciation (for importers) or appreciation (for exporters)
- No initial margin is required, and there are no margin calls
Exchange-Rate Option types:
- CALL. Gives the client the right to buy dollars
- PUT. Gives the client the right to sell dollars
Documents required for corporations
- Deed of incorporation (inscribed in the appropriate registry)
- Power(s) of attorney registered with the Public Registry of Commerce, when applicable
- Current official ID of representative(s)
- Electronic signature, when applicable
- Real beneficiary statement letter, when applicable
- Statement of tax compliance (no more than 1 month old), including:
- TAX ID (RFC)
- Population registry code (CURP)
- Tax address
- Economic activity
- Tax regime