A type of equivalent position that is derived from the simultaneous buying and selling of the call and put option that has the same pay-off. Note that synthetic underlying does not involve the buying and selling of an options' underlying asset.
Related information about synthetic underlying:
- Synthetic Underlying Explained | Online Option Trading Guide
A synthetic underlying position is an equivalent position that is constructed without actually buying or selling the underlying security. Instead, call and put options ...
- Synthetic position - Wikipedia, the free encyclopedia
If you buy several instruments which have the same payoff as investing in a share , you have a synthetic underlying position. In a similar way, a synthetic option ...
- What is synthetic underlying? definition and meaning
Definition of synthetic underlying: A type of equivalent position that is derived from ... Note that synthetic underlying does not involve the buying and selling of an ...
- Yahoo! Options Glossary
Synthetic Underlying A long (short) call together with a short (long) put. Both options have the same underlying, the same strike price and the same expiration ...
- What is the risk exposure of a long/short synthetic underlying ...
Since you refer to a synthetic underlying, I will assume you are long the call and short the put, same strike and expiry, and that the strike is the closest one to the ...
- * Synthetic put - (Stock market): Definition
Synthetic underlying: A long (short) call together with a short (long) put, where both options have the same underlying, exercise price, and expiration date.
- Risk Management using Options. Hedge ratios
Synthetic positions using the put/call parity. A synthetic underlying asset. This position can be replicated by buying a call option, selling a put option and buying a ...
- What is SYNTHETIC LONG POSITION? - The Law Dictionary
SYNTHETIC SHORT POSITION, SYNTHETIC UNDERLYING, SHORT POSITION, NAKED POSITION, SYNTHETIC OPTION, COVERED POSITION, POSITION ...