An investment strategy that mimics the profit opportunities of a long futures position without need to purchase futures directly. The investor buys an at-the-money call option and sells an at-the-money put option for the same amount of the underlying security, and is able to profit from an upward price movement.
Related information about synthetic futures contract:
- Synthetic Futures Contract Definition | Investopedia
A position created by combining call and put options for the purpose of mimicking the payout schedule and characteristics of a futures contract.
- Synthetic Futures Contract Definition & Example | InvestingAnswers
We explain the definition of Synthetic Futures Contract, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Synthetic Futures Contract - Financial Dictionary - The Free Dictionary
The purchase of calls and the sale of puts with the same expiration date and strike price. 2. The purchase of puts and the sale of calls with the same expiration ...
- Synthetic Futures Contract: Definition from Answers.com
Synthetic Futures Contract A position created by combining call and put options for the purpose of mimicking the payout schedule and characteristics of.
- What is synthetic futures contract? definition and meaning
Definition of synthetic futures contract: An investment strategy that mimics the profit opportunities of a long futures position without need to purchase futures ...
- Synthetic futures contract - MarketsWiki, A Commonwealth of Market ...
Sep 29, 2011 ... A synthetic futures contract is a position created by combining call and put options in order to mimic the payout schedule and characteristics of ...
- B - Dairy Markets & Policy
Oct 1, 2012 ... synthetic futures contract for cheese that can be used to back-cast current cheese futures prices and thus provide a sufficient time series for ...
- k - Wiley Online Library
borrowing or lending appropriate amounts, a synthetic futures contract may be ... effectiveness of the currency futures contract and the synthetic futures contract ...