Iron Condor
Greeks · 9 min

Synthetic positions and put-call parity

Every option position has a synthetic equivalent built from other instruments. The relationship is enforced by arbitrage and gives the trader options on how to express the same view.

In this lesson

  • The four common synthetics
  • A worked equivalence
  • Risk reversals as synthetic stock
  • The American exercise wrinkle

Read the full lesson in the app

The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.

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