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Synthetic put |
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Synthetic putA strategy equivalent in risk to purchasing a put option where an investor sells stock short and buys a call.Synthetic put Similar MatchesSyntheticsSyntheticsCustomized hybrid instruments created by blending an underlying price on a cash instrument with the price of a derivative instrument. It is a combination of security holdings that mimics the price movement of another single security (i.e., synthetic call: long position in a stock combined with a put on that position; a protected long sale; synthetic put: short position in a stock combined with a call on that position; a protected short sale). Synthetic stockSynthetic stockAn 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 sythetic short stock. Synthetic forward positionSynthetic forward positionA forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market. Synthetic long stockSynthetic long stockA long call position combined with a short put of the same series. Synthetic long putSynthetic long putA short stock position combined with a long call of the same series as that put. Further Suggestionssynthetic long callsynthetic position |
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