synthetic stock

synthetic stock
An option strategy that is equivalent to the underlying stock. A long call and a short put is synthetic long stock. A long put and a short call is synthetic short stock. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Synthetic options position — In finance, a synthetic underlying position is one that synthetically duplicates the payoff of a long underlying position with a long call and short put at the same strike and expiration. For example, a position which is long a 60 strike call and …   Wikipedia

  • Synthetic — A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets. For example, you can create a synthetic stock by purchasing a call option and simultaneously selling… …   Investment dictionary

  • Synthetic replication — is the process by which a financial asset s payoff is exactly replicated by trading other securities. [citebook|title=Applied Equity Valuation|author=T. Daniel Coggin, Frank J. Fabozzi|year=1998|publisher=John Wiley and Sons|id=ISBN 1883249511]… …   Wikipedia

  • Stock (firearm) — A stock, also known as a buttstock or shoulder stock, is present in many firearms and some crossbows (though a crossbow stock is properly a tiller ). [cite web |url=http://www.etymonline.com/index.php?term=tiller |title=Online Etymology… …   Wikipedia

  • Synthetic Put — A trading strategy that combines the short sale of a security with a long call position on the same security. Synthetic put combination is to effectively create a synthetic put position that has almost the same risk reward attributes as a… …   Investment dictionary

  • Synthetic ETF — An investment that mimics the behavior of an exchange traded fund (ETF) through the use of derivatives such as swaps. Proponents of synthetic ETFS say they do a more accurate job of tracking indexes; critics say that synthetic ETFs face… …   Investment dictionary

  • Synthetic Dividend — A type of incoming cash flow that an investor creates with certain financial securities to produce a dividend like payment stream that resembles the periodic cash receipts from a dividend paying stock. For example, suppose an investor owns shares …   Investment dictionary

  • synthetic put — A strategy equivalent in risk to purchasing a put option where an investor sells stock short and buys a call. Bloomberg Financial Dictionary …   Financial and business terms

  • synthetic fund — A type of futures and options fund where the fund is designed to perform in accordance with an index, often a stock index such as the FTSE 100. It does not invest in the underlying securities themselves, but instead uses derivatives to gain the… …   Financial and business terms

  • synthetic crudes — The total liquid, multicomponent mixture of hydrocarbons resulting from a process involving molecular rearrangement of charge stock. Commonly applied to such products from cracking, reforming, visbreaking, etc …   Petroleum refining glossary

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