Synthetic

What does it Mean? A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets.
Investopedia Says... For example, you can create a synthetic stock by purchasing a call option and simultaneously selling a put option on the same stock. The synthetic stock would have the same capital-gain potential as the underlying security.

Terms Related Links

Call Option
Capital Gain
Constant Proportion Debt Obligation - CPDO
Put
Synthetic Lease
Underlying

Terms Related Links
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