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 ?
In 2014, Europe accounted for a major share of the global synthetic lubricants and functional fluids market.
Tamaz Khikhinashvili (New Diamond Technology, St Petersburg, Russia) reported that in May 2014 his company made significant developments in HPHT technology that allowed them to grow larger, higher-quality synthetic diamonds, including two that were faceted into gems weighing 5.11 ct (K colour, Ij clarity) and 4.30 ct (D colour, SIX clarity).
In 1995, a Clemson University professor used a synthetic compound to conduct research identifying the effects on the brain from cannabinoids.
Despite the recent influx of screwcaps into the premium wine arena, the synthetic cork manufacturers I spoke with said they are optimistic about the future of synthetics.
The system is "a clever and unique approach to develop synthetic bone scaffolds that are cell-responsive," comments Kristi S.
Several factors are behind the recent expansions in synthetic paper and the entrance of new players and products.
(As Rainforest Action Network Director Randall Hayes once said in defense of activism over deep ecology, "It's a spiritual act to try to shut down DuPont.") Banning all synthetic chemicals, beginning with the huge number that contain or are synthesized with chlorine, would usher in a non-industrial utopia.
This approach seems to restrict synthetic instrument accounting to situations where the swap or other derivative is entered into at the inception of a borrowing or lending transaction.
With either structure, the trust would have a secondary claim against the issuer of the wraparound guarantee in an amount representing the difference between the market value of the assets and the book value of the synthetic investment.
With epoxidized natural rubber, the property/cost balance is right, and the competing synthetics have been in existence for some time, so the market area is well documented.
The excitement of synthetics became the necessity of synthetics and rubber chemists, who had been essential to industry, now became essential to the government's plan.
Synthetic drugs mimic the effects of illegal narcotics and, in some cases, are developed in attempts to evade regulation.