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Synthetic put

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Synthetic put
A strategy equivalent in risk to purchasing a put option where an investor sells stock short and buys a call.

 


Converted put
See Synthetic Put.
Convertibility
The ability to exchange a currency without government restrictions or controls.

Portfolio insurance A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level.

A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The strategy's goal is to ensure that the value of the portfolio does not fall below a certain level. Portfolio internal rate of return ...

At about the same time portfolio insurance was designed to create a synthetic put option on a stock portfolio by dynamically trading stock index futures according to a computer model based on the Black-Scholes option pricing model.

A strategy that involves rebalancing hedge positions as market conditions change a strategy that seeks to insure the value of a portfolio using a synthetic put option.
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Sometimes, this process is called dynamic hedging because it requires quick adjustments in the hedge. Initially, futures were used at various stop points to serve as synthetic put options.

synthetic call: long position in a stock combined with a put on that position; a protected Definition: EF="/?rd=long"long sale; synthetic put: short position in a stock combined with a call oDefinition: n that position; ...

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).

conditions, as in a portfolio insurance strategy, for example. Dynamic hedging A strategy that involves rebalancing hedge positions as market conditions change; a strategy that seeks to insure the value of a portfolio using a synthetic put ...

synthetic put This occurs when somebody short sells a security and buys it long upon its call.... synthetic stock Multiple assets are combined to form a synthetic stock. For example, a synthetic... SYP The ISO code for the Syrian Pound.

See also: Portfolio insurance, Systematic risk, Internal rate of return, Banks, Unsystematic risk

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