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
Purchased put
Reverse conversion
Sold call
Strike price
 Related Terms

<< Synergistic effect Synthetic long call >>

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