Converted put

(redirected from Synthetic Puts)

Converted put

Converted Put

The purchase of a call option and the short sale of the underlying asset. This is effectively the same as buying a put option because one makes a profit if the underlying asset decreases in price. For this reason, a converted put is also called a synthetic put.
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The company also has synthetic puts on over 72 million pounds of copper.
The Company has had in place a price protection program consisting of puts and synthetic puts for a portion of its own copper production and the copper production of SPCC.
This term is used to distinguish it from a synthetic put, which is selling MBS forward and buying MBS calls.