Financial and business terms. 2012.
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 call option — A combination of a long futures contract and a long put, called a synthetic long call. Also, a combination of a short futures contract and a short put, called a synthetic short call. Chicago Mercantile Exchange Glossary … Financial and business terms
Synthetic Call — An investment strategy that mimics the payoff of a call option. A synthetic call is created by purchasing the underlying asset, selling a bond and purchasing a put option. The strike price on the put option is equal to the face value of the bond … Investment dictionary
synthetic — A derivative position which is created synthetically by using other derivative contracts. For example, the creation of a synthetic long future by the purchase of a call option and the sale of a put option with the same exercise price and expiry… … Financial and business terms
Put–call parity — In financial mathematics, put call parity defines a relationship between the price of a call option and a put option both with the identical strike price and expiry. To derive the put call parity relationship, the assumption is that the options… … Wikipedia
Synthetic Forward Contract — A position in which the investor is long a call option and short a put option. The synthetic forward contract requires that both options be held simultaneously by a single investor, that have the same strike price and expiration date. This… … Investment dictionary
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 position — A hedging strategy combining futures and futures options for price protection and increased profit potential; for example, by buying a put option and selling (writing) a call option, a trader can construct a position that is similar to a short… … Financial and business terms
synthetic long — A long futures position synthetically created by the purchase of a call option and the sale of a put option with the same strike price and expiry date, and on the same underlying asset. Dresdner Kleinwort Wasserstein financial glossary … Financial and business terms
synthetic long call — A long call option position created synthetically by the purchase of the future or underlying and the purchase of a put option. Dresdner Kleinwort Wasserstein financial glossary … Financial and business terms
