Synthetic (redirected from Cynthetic)

Synthetic

A financial instrument that is created artificially by simulating another instrument with the combined features of a collection of other assets.

Notes:

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.

See also: Call Option, Capital Gain, Put, Synthetic Lease, Underlying