ons remain out of the money Closing the trade on Jun17 expiry; Global volatility collapsed in 1H2017 Recent political turmoil in Brazil surrounding Temer's presidency caused a slide in the Brazilian equity market and the BRL In Dec-16, we recommended remaining long equities overlayed with cheap hedges

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that Vice President Michel Temer (PMDB) is seriously considering quitting the position of Rousseff's chief political coordinator. Speculation about Temer's abandoning the post increased this week after Lower House Speaker Eduardo Cunha (PMDB) argued that Temer should quit. The PMDB reportedly resents

aker Eduardo Cunha (PMDB) argued that Tcmer should quit. The PMDB reportedly resents the fact that the government is blocking the appointments that Temer has offered lawmakers in exchange for passing the fiscal adjustment bills in Congress. Deterioration in the political atmosphere has led to some imp