FT MarketWatch

Synthetic put

A Transaction involving the Purchase of a Call option on a stock that has already been shorted. This enables the holder to protect against an increase in the price of the underlying stock. If the stock price decreases, the Call is not exercised and the investor profits minus the premium. If the stock price increases, the Call is exercised and the investor breaks even minus the premium and short Interest.

Related Terms: 14 Action, Break, Call, Call option, Exercise, Interest, Inc., ITS, Option, Profit, Purchase, Short interest, Short, Transaction
Other Related Pages: Category: Options Starting With: S
Semi Related Terms: 672 CLICK HERE TO VIEW
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