Synthetics - Customized 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 which 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).
Synthetics : customized 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 which 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).
Synthetics