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Synthetic futures

• Is a position constructed with options which have the same strike price and same expiration. It can be either long or short. A long synthetic futures position consists of a purchased a call and a sold a put. A short synthetic futures position consists of a sold call and a purchased put. It is a part of the conversion and reverse conversion strategies.

 
 Embedded terms in definition
 Call
Conversion
Expiration
Futures
Long
Options
Position
Purchased put
Put
Reverse conversion
Reverse
Short
Sold call
Strike price
 
 Related Terms
 

<< Synergistic effect Synthetic long call >>

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