ABSTRACT
This extra chapter, which addresses some of the theoretical aspects of Brazilian options, can be justified by some BGM applications, but has been added mostly because the content appeals to the author! At the outset, it should be emphasized that it may contain mistakes and biased interpretations due to the author’s relative unfamiliarity with the area (details of some instruments are a struggle, in particular, the system of contract dates). For more information, readers might like to refer to the English language
website [26] for the interest rate section of the Bolsa de Mercadorias & Futuros (BMF), which is the main Brazilian Mercantile & Futures Exchange.
