synthetic call

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Synthetic Call

The purchase of an asset combined with the sale of a bond and the purchase of a put option on that asset. The strike price of the put is equal to the face value of the bond. Combined, these investments produce the same effect as buying a call option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

synthetic call

The combination of a commodity and a put option on the commodity with the effect being the same as owning a call option.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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