Synthetic Futures Contract
(redirected from Synthetic Futures)Synthetic Futures Contract
1. 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 date and strike price.
In both cases, the position creates the effect of holding a long position (for the first definition) or a short position (for the second) on a futures contract.
2. The purchase of puts and the sale of calls with the same expiration date and strike price.
In both cases, the position creates the effect of holding a long position (for the first definition) or a short position (for the second) on a futures contract.
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