Synthetics


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Synthetics

Customized hybrid instruments created by blending an underlying price on a cash instrument with the price of a derivative instrument. It is a combination of security holdings that mimics the price movement of another single security (i.e., 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).

Synthetic Investment

A combination of investment vehicles that, when used together, can create a profit. An example is an option spread, where one takes two or more positions in option contracts in order to profit from the difference in their prices. Likewise, one may create a synthetic index in order to outperform a real index. Institutional investors are the main creators of synthetic investments.
References in periodicals archive ?
Nearly 47 per cent of synthetic lubricant base stocks are used in crankcase oils, the single largest application.
Motor oil blends that include synthetic and conventional base oils already hold significant market shares in other countries.
Synthetic motor oil is something most consumers either aren't aware of or consider a high-tech extra for people with speedy sports cars.
GIC-like Synthetic with Direct Asset Ownership: A common alternative for plan sponsors today is to invest in synthetic GIC arrangements that operate very much like the traditional product, but also provide diversification from the credit risk of the financial services industry.
In the 1960s, when synthetic rubbers appeared to threaten the viability of natural rubber, the first moves were made in this direction with the development and introduction of the Standard Malaysian Rubber (SMR) scheme in 1965.
While there, he continued his work in synthetic rubber, studying vinyl monomers, especially the dienes.
According to Benedict, BioPolymers isnow working to make a synthetic analog of the natural mussel adhesive and plans to apply to the FDA this year for clinical ophthalmological trials.
Synthetic technology is also more flexible, enabling the structuring bank to tailor the transaction to the specific needs of the investor.
The energy and power generation, automotive equipment, and industrial machinery markets will all present growth opportunities for synthetics.
Despite the growing popularity of synthetics like Mobil 1, there are many other fallacies that continue to be spread, including:
Standard & Poor's Ratings Services said today that the rise in synthetic CDOs and credit derivatives activity in Asia's structured finance market in the past year as a clear indication that Asian banks and investors are becoming increasingly aware of the untapped potential for such transactions, according to a recently published commentary by Standard & Poor's Structured Finance Ratings group.
On the other hand, synthetic polymers can cause inflammation, and it's difficult to engineer the material to break down in synchrony with bone regrowth.